Because of the increasing price of iron ore, Wugang significantly raised EXW prices for May. Most steel products price adjustments are as much as CNY 500 per tonne. However insiders said that the overheated momentum has already transferred through steel mills to steel market thus the risk is also increasing.

It is reported that Wugang announced their pricing policy for May yesterday. According to the announcement except for the price of CR which hikes by CNY 100 per tonne prices of HR, rolled plate, galvanized products, tin-plated products, non-oriented silicon steel, color coated products and WRC are all rise by CNY 500 per tonne. This is the fourth consecutive prices rise by Wugang this year. But insiders from Wugang told reporter that recent prices increase could not covered the rise of the costs such as iron ore coke.

In fact, Wugang is only one example of the steel mills raising their EXW prices. According to information from Lang Steel Information Research Center, from March 15th to April 10th, Hebei Iron and Steel Group raised EXW prices for three times. And the WRC price rose by CNY 400 per tonne and rebar price rose by CNY 500 per tonne in total. Similarly Shagang raised their rebar price by CNY 650 per tonne and WRC price by CNY 600 per tonne in total from March 11th to April 11th.

Because iron ore price rising plays the main role in steel price hiking, steel traders concern about the outcome of the iron ore negotiation. Mr. Du from Beijing Shou Chuang Heng Da Trade Co Ltd worried about the possibility of steel price plunge after the iron ore price has been set. “Once the iron ore price has been set, there must be change in steel prices.” he said.

• [Editor:editor]