Shagang Group, the country’s leading privately-owned steel producer headquartered in East China’s Jiangsu province, has decided to keep its list prices of rebar, wire rod, and bar-in-coil unchanged from early October for sales during the middle of the month, the company announced on Tuesday morning.
Shagang releases its long steel prices every 10 days, and its pricing policy is usually of great reference to the country’s long steel market, especially in East China. Besides, Shagang’s latest announcement marked the third time in succession that the Chinese steel giant had rolled over its long steel prices for a 10-day sales period, Mysteel Global noted.
With the latest announcement, Shagang’s HRB400 16-25mm dia rebar is still priced at Yuan 4,200/tonne ($585/t), HPB300 6-10mm high-speed wire rod price at Yuan 4,310/t, and HRB400 8-10mm bar-in-coil price at Yuan 4,400/t, all in terms of EXW and including the VAT.
According to Mysteel’s assessment, the spot price of HRB400E 20mm rebar in Shanghai – a major market for the Shagang brand rebar – moved up by Yuan 50/t from that on September 30 to Yuan 4,090/t including the 13% VAT as of October 10.
“Despite the modest gains in spot steel prices in recent few days, China’s steel market is still short of confidence after the holiday (China’s National Day holiday over October1-7),” said a Shanghai-based market insider, adding that “resurgent COVID-19 cases in many Chinese cities have raised concerns among market participants over the market outlook.”
Mysteel’s survey on the daily trading volume of rebar, wire rod, and bar-in-coil among 237 Chinese steel trading houses showed that the tonnage averaged 169,346 tonnes/day over October 8-10.
Marker sources pointed out that “uncertainties remain in the demand outlook as end-users’ cashflows have yet to improve significantly.”
Written by Rong Zhang, zhangronga@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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