Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for all long steel products for late April (April 21-30). Accordingly, the company has cut its offer prices for 16-20 mm HRB400 rebar and 8-10 mm HRB400 debar-in-coil by RMB 100/mt ($14.6/mt) and RMB 80/mt ($11.7/mt), to RMB 3,350/mt ($488/mt) and RMB 3,480/mt ($507/mt), respectively. All prices are on ex-works basis.
Despite the positive movements in the Chinese spot market over the past week and the gradual increase in futures prices, this move by Shagang signals that local buyers are still very price-sensitive and that mills needing to push bigger volumes into the market have to provide discounts.
For the mid-April (April 11-20) period, the producer had kept its offer prices for 16-20 mm HRB400 rebar and 8-10 mm HRB400 debar-in-coil stable at RMB 3,450/mt ($500/mt) and RMB 3,560/mt ($516/mt), respectively.
As of April 20, the average rebar price in the Chinese market was standing at RMB 3,297/mt ($481/mt) ex-warehouse, increasing by RMB 60/mt ($9/mt) compared to April 10, according to SteelOrbis’ data.
As of April 20, rebar futures at the Shanghai Futures Exchange were at RMB 3,172/mt ($462/mt), increasing by RMB 73/mt ($10.6/mt) or 2.4 percent since April 10, while rising by 1.24 percent compared to the previous trading day, April 17.
Prices include 13 percent VAT.
