Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for hot rolled coil (HRC) for October this year. Accordingly, the company has kept its offer prices for Q235 5.5 mm x 1,500 mm HRC stable at RMB 6,250/mt ($966/mt) ex-works.
In September, the producer had also kept its offer prices for HRC stable, reflecting its lack of expectation of a significant improvement in demand.
HRC futures prices at Shanghai Futures Exchange moved up by RMB 221/mt ($34.2/mt) from September 1 to September 30, positively affecting market players’ sentiments. Meanwhile, iron ore prices in September moved on a declining trend, weakening the support for HRC prices from the cost side. Since September 21, iron ore prices have bottomed up to a certain degree, bolstering HRC prices. It is thought that HRC prices will edge up in October amid continuing production restrictions. However, the positive outlook for the HRC market is much more cautious than for rebar.