Jiangsu Province-based Shagang Group, China's largest private steelmaker, has issued its list prices for hot rolled coil for August this year.
Accordingly, the company has cut its offer prices for 5.75 mm x 1,500 mm Q235B HRC by RMB 150/mt ($22/mt) to RMB 3,550/mt ($523/mt) ex-works, for delivery in August.
Previously, the producer had kept its offer prices for 5.75 mm x 1,500 mm Q235B HRC stable at RMB 3,700/mt ($502/mt) ex-works, for delivery in July.
The slack demand for HRC from downstream users amid high summer temperatures exerted a negative impact on prices in the spot market in July. Shagang's move to cut local HRC prices by $22/mt will weaken market sentiments in August, though the price cut was expected by the market. Since the end of the off-season is approaching, demand for HRC may improve by the end of August, which will likely bolster prices.
