Baosteel has announced that it will be cutting factory prices for major products in October but raising prices for electrical steel.

Baosteel has announced that it will be cutting factory prices for major products in October but raising prices for electrical steel.

The company has cut prices for hot-rolled steel, cold-rolled steel, pickling steel and galvanised steet by 80 to 150 yuan/tonne and, according to analysts, the cuts are within market expectation. Other major Chinese steelmakers are likely to follow suit so watch out for price cuts from Wuhan Iron and Steel and Ansteel.

Where spot prices are concerned, hot-rolled coil prices have dipped up to 300 yuan/tonne in Shanghai and Tianjin, widening the gap between factory and spot prices.