SteelOrbis Shanghai
On May 24, the five leading northern Chinese mills - Shougang, Tangshan Steel, Xuanhua Steel, Tianjin Steel and Chengde Steel - announced a downward adjustment to their prices for June from May levels. The details are as follows:
1. Rebar
The ex-factory price of 16-25 mm diameter HRB 335 rebar is down by RMB 70/mt ($9/mt) to RMB 3,510/mt ($459/mt), while that of 12-14 mm has likewise decreased to RMB 3,860/mt ($505/mt). 16-25 mm diameter HRB 400 rebar costs RMB 3,640/mt ($476/mt), while 12-14 mm is now at RMB 3,990/mt ($522/mt).
2. Wire rod
The prices of wire rod have been reduced by RMB 70/mt ($9/mt). As a result, 6.5 mm diameter Q235 high speed wire rod now costs RMB 3,570/mt ($467/mt).
All the above prices include 17 percent VAT and are effective as of June 1, 2007.
On May 14, a considerable upward adjustment was made to the ex-factory prices of the five leading northern mills. Following the adjustment, Chinese long product prices saw a rapid climb before slumping sharply. Since this decrease was fairly significant for such a short period of time, the market has shown signs of returning to stability or even of a slight rebound; however, the overall downward trend is not likely to change.