China's Baosteel raises Sept prices

BEIJING, Aug 7 (Reuters) - China's leading steelmaker, Baosteel Group, has raised steel prices for September by 300-800 yuan a tonne, the Xinhua news agency said on Friday, with the biggest rise reflecting a recovery in the shipbuilding sector.

         The price rise follows a similar hike in August, as China's stimulus spending continues to underpin domestic steel markets.

         On Thursday, Baosteel's former chairwoman Xie Qihua noted that new ship orders had risen in July, in remarks at a ship christening that were reported by industry website Umetal. 

        Chinese steel prices are expected to continue to climb mildly into next year, she said.

        Baosteel, the parent of listed Baoshan Iron and Steel Co. Ltd and China's largest steel mill, had struggled with a collapse in domestic steel demand, especially for higher value steel, when the financial crisis hit last autumn.

        The sector is now looking up, with rival Wuhan Iron and Steel also raising September prices for hot and cold-rolled steel by 18-21.4 percent.

        Baosteel is likely to officially issue prices next week.

Below are the price rises for Baosteel products, as reported by Xinhua, citing a source in Baosteel's sales department: 

PRODUCT PRICE CHANGE (yuan/tonne)
Steel pellet 0
Steel wire 300-400
Thick plate 600
Structured steel 600
Boiler plate 600
Shipbuilding plate 800

Source: Reuters