Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for hot rolled coil (HRC) for January this year. Accordingly, the company has raised its offer prices for Q235 5.5 mm x 1,500 mm HRC by RMB 800/mt ($122.3/mt) to RMB 5,150/mt ($787/mt) ex-works.
In December, the producer had raised its offer prices for HRC by RMB 50/mt to RMB 4,350/mt ex-works.
HRC futures prices at Shanghai Futures Exchange moved up by RMB 376/mt ($57.5/mt) in the month of December, exerting a positive impact on market sentiment. Meanwhile, in December, iron ore prices moved up first while edging down later, influencing the HRC market from the cost side. However, the cold weather hitting China and the New Year holiday have negatively affected HRC prices amid lower demand. Downstream industries may be on holiday starting from mid-January or late January, which may slacken the demand for HRC and drag down prices further.
All prices include 13 percent VAT.
