Baowu keeps most February steel prices unchanged

China's state-controlled Baowu group has kept most prices of its hot-rolled coil (HRC) and cold-rolled products unchanged for February compared with a month earlier but raised them by 50 yuan/t ($7.28/t) for March.

Baowu, China's largest steel producer, was created in 2016 with the merger of Baosteel and Wuhan Iron & Steel (Wisco).

Wisco's plants will keep most prices unchanged in February, except raising the price of HRC with thickness of 12-15.99mm by Yn40/t.

Baowu does not provide prices of its products, a large volume of which it sells through term contracts with manufacturing companies, such as vehicle producers. Baowu has an over 50pc market share in auto-grade steel used by domestic automobile companies.

The Argus-assessed HRC price, ex-warehouse Shanghai, was at Yn3,650/t on 4 January.

Steel demand in China is expected to be sluggish in February as construction activity in north China remains muted in winter, while the number of working days will be cut short by the week-long lunar new year holiday. Construction demand typically revives with the onset of spring.