China Steel Prices Jump as Baosteel Hikes Rates for 2026

Input Cost Pressures

The price hike is largely a reaction to rising raw material costs. Both iron ore and coking coal have seen significant price appreciation in early January, forcing mills to pass on costs to protect thinning margins.

Macroeconomic Stimulus

Expectations of further loose monetary policy from Beijing have encouraged traders to build inventories. While the property sector remain a laggard, demand from the automotive and shipbuilding sectors is showing signs of resilience.