SteelOrbis Shanghai
As one of the most influential groups in the Chinese steel industry, in their latest price announcement the five major northern mills - Shougang, Tangshan Steel, Xunahua Steel, Tianjin Steel, and Chengde Steel - have sharply hiked their ex-factory prices in the middle of the month, something which has hardly ever happened before. Consequently, in the short term longs prices will be pushed up further in the domestic Chinese market; however, in the long run, this price adjustment will likely cause a reverse trend in the Chinese long products market. Once traders find it hard to make profits through price increases, they will lower their prices in order to limit their losses.
The details of this latest price adjustment announced by the leading northern Chinese mills on May 14, 2007 are as follows:
1. Rebar
The ex-factory price of 16-25 mm diameter HRB 335 rebar is up by RMB 200/mt ($26/mt) to RMB 3,580/mt ($467/mt), while that of 12-14 mm has increased RMB 400/mt ($52/mt) to RMB 3,930/mt ($512/mt). The price of 16-25 mm diameter HRB 400 rebar costs RMB 3,710/mt ($484/mt), while that of 12-14 mm is at RMB 4,060/mt ($529/mt).
2. Wire rod
An upward adjustment of RMB 200/mt ($26/mt) has been made to wire rod prices. As a result, the price of 6.5 mm diameter Q235 high speed wire rod is now at RMB 3,640/mt ($475/mt).
All the above prices include 17 percent VAT and are effective as of May 15, 2007.