Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for hot rolled coil (HRC) for December this year.
Accordingly, the company has cut its offer prices for Q235 5.5 mm x 1,500 mm HRC by RMB 1,000/mt ($157/mt) for December to RMB 4,950/mt ($777/mt) ex-works.
In November, the producer had decreased its HRC prices by RMB 300/mt ($47/mt) to RMB 5,950/mt ex-works.
HRC futures prices at Shanghai Futures Exchange have declined by RMB 238/mt ($37.4/mt) or 4.93 percent from November 1 to November 30.
As for December, demand for HRC in China will remain slack in the traditional cold winter off-season, which will exert a negative impact on prices. Lower raw material prices have also contributed to this drop in HRC prices from Shagang.
Local HRC spot prices in China fell by 9.7 percent in November, according to SteelOrbis’ data, to RMB 4,770/mt ($749/mt) ex-warehouse on November 30.
