There are several factors behind Baosteel's decision. Firstly, there is an urgent need for renewal among HRC users, which increases demand in the market and contributes to price stability. Secondly, an increase in steel demand is expected in April. April traditionally sees strong steel consumption in China, thus price stability was anticipated.
Baosteel's relatively good performance in export orders also aids in maintaining prices. Increased demand in exports allows Baosteel to keep its prices stable. Lastly, low production costs improve Baosteel's profit margins and enable price stability. Lower iron ore costs enhance Baosteel's profit margins, facilitating price stability.
Baosteel's pricing policy for April indicates no changes in HRC prices. Prices for electro-galvanized steel and hot-dip galvanized steel will increase by 100 Yuan/ton ($13.90) for certain specifications. List prices for particle silicon steel will increase by 200 Yuan/ton ($27.81), and prices for certain grades of GO steel will increase by 300 Yuan/ton ($41.71).
Baosteel's decision to keep HRC prices unchanged for April signals stability in the steel market. Increased demand and low production costs contribute to price maintenance. Similar price policies are expected from other steel producers.
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