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 raised its offer prices for Q235 5.5 mm x 1,500 mm HRC by RMB 50/mt ($7.6/mt) to RMB 4,350/mt ($660/mt) ex-works.
In November, the producer had kept its offer prices for HRC stable at RMB 4,300/mt ex-works.
HRC futures prices at Shanghai Futures Exchange moved up by RMB 300/mt ($45.5/mt) from November 2 to November 30, exerting a positive impact on market players’ sentiments. Meanwhile, iron ore prices have moved on an overall rising trend, providing solid support for HRC prices from the cost side. Currently, demand for flats in China is stronger than domestic demand for longs against the backdrop of the cold weather hitting China. Accordingly, local HRC prices will likely fluctuate within a limited range at high levels in December.
$1 = RMB 6.5921