Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for all long steel products for January 1-10. Accordingly, the company has held its offer prices for rebar, high-speed wire rod and bar-in-coil stable at RMB 3,960/mt ($568.9/mt), RMB 3,970/mt ($570.3/mt) and RMB 4,010/mt ($576.0/mt), respectively. All prices are on ex-works basis.
The producer had cut its offer prices for high-speed wire rod and bar-in-coil by RMB 300/mt, decreased its offer prices for rebar by RMB 250/mt in the December 21-31 period.
Spot rebar prices in the Chinese domestic market have recently edged down due to slack demand amid rainy and snowy weather conditions, e.g., decreasing by RMB 76/mt ($10.9/mt) as of Tuesday, December 31, to RMB 3,827/mt ($549.7/mt) ex-warehouse as compared to December 20, according to SteelOrbis’ data. Rebar futures prices at Shanghai Futures Exchange have decreased by RMB 11/mt ($1.6/mt) or 0.31 percent on Thursday, January 2, compared to Tuesday.
Shagang Group’s price policy reflects the mill’s more optimistic view of the prospects for long steel demand in early January amid tight supply and stock replenishment ahead of the approaching Chinese New Year holiday.
$1=RMB 6.9614