SteelOrbis Shanghai
China's Jiangsu Province-based steelmaker Sahagang made an upward adjustment to its HR prices for September, increasing its ex-factory prices to a level much higher than the present market price level. With this hike Shagang intends to make up for the losses it sustained due to its relatively low August price. However, such a big hike not only overdraws on the available room for future price increases, but also impairs the enthusiasm of traders, making further upward price movement unlikely. Therefore, Shagang's price policy seems not quite appropriate in the current market situation. The details of the new prices are as follows:
1. Rebar prices are up by RMB 200/mt ($26/mt) from late August levels. Thus, the price of 14-25 mm diameter HRB 335 is now at RMB 3,940/mt ($521/mt).
2. High speed wire rode prices increased RMB 120/mt ($16/mt). As a result, the price of 6.5 mm Q235 is at RMB 3,920/mt ($519/mt).
3. HR coils are up by RMB 470/mt ($62/mt) compared with the previous month. Following the adjustment, the price of 5.75 mm x 1,500 mm x C SS400 is at RMB 4,300/mt ($569/mt).
All the above prices include 17 percent VAT. The long product prices are effective from September 1 to September 10, while the HR coil prices will be in effect for the whole of September.