Major steelmakers raise prices for March

Major steel mills run by Baoshan Iron and Steel Co Ltd and Wuhan Iron and Steel Co Ltd are to substantially raise the ex-factory prices of their leading products for March delivery, according to sources.

The decision comes as increasing investment in infrastructure construction and urbanization is encouraging domestic steelmakers to raise their expectations for 2013.

Wuhan Iron and Steel, the nation's fourth largest steelmaker by output, is raising prices of main steel products for March delivery by 150-200 yuan ($23.85-$31.80) a ton, the fifth consecutive month that prices of hot-rolled coils and cold-rolled coils have been raised, the National Business Daily reported on Tuesday.

As early as January 22, Baosteel, the nation's largest listed steelmaker, increased product prices for March delivery, with cold-rolled coils and hot-rolled coils seeing increases of between 200 yuan and 300 yuan a ton.

Shen Yibing, an analyst from mysteel.com, a steel industry information provider, said the increased prices by the two major steelmakers showed confidence within the industry was recovering, and further price rises may be introduced later this year with the revival of the auto and property markets.

"Although the domestic steel market is still under destocking pressure, market confidence will help hold product prices at a high level in the short term," Shen said.