Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for all long steel products for November 11-20.
Accordingly, the company has cut its offer prices for high-speed wire rod and debar-in-coil by RMB 400/mt ($62.4/mt), to RMB 5,260/mt ($820/mt) and RMB 5,350/mt ($834/mt) respectively. Prices for rebar have been reduced by RMB 450/mt ($70.2/mt) to RMB 5,100/mt ($795/mt). All prices are on ex-works basis.
This means that since the beginning of the month Shagang Group has cut rebar prices by RMB 1,050/mt in total or by $164/mt. The producer had cut its offer prices for high-speed wire rod, debar-in-coil and rebar by RMB 600/mt ($93.5/mt) for November 1-10.
As of November 10, the average rebar price in the Chinese market was standing at RMB 4,720/mt ($736/mt) ex-warehouse, down by RMB 600/mt ($93.5/mt) or 11.3 percent from October 29, according to SteelOrbis’ data.
The market sentiment has been weak as dropping spot prices, triggered by poor demand, have been impacting producers in China.
As of November 10, rebar futures at the Shanghai Future Exchange are standing at RMB 4,382/mt ($683/mt), decreasing by RMB 264/mt ($41.2/mt) or 5.7 percent since October 29.
Prices include 13 percent VAT.
Nevertheless, on November 11, rebar futures have posted a sharp rebound, by RMB 307/mt ($48/mt), from the previous day’s settled price and up RMB 61/mt ($9.5/mt) from the closing price to RMB 4,443/mt ($693/mt).
$1 = RMB 6.4145