Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for all long steel products for October 21-30.
Accordingly, the company has kept its offer prices for high-speed wire rod, debar-in-coil and rebar stable at RMB 6,260/mt ($971/mt), RMB 6,350/mt ($984.5/mt), and RMB 6,150/mt ($953.5/mt), respectively. All prices are on ex-works basis.
The producer had raised its offer prices for high-speed wire rod, debar-in-coil and rebar by RMB 150/mt ($23/mt), RMB 150/mt ($23/mt) and RMB 100/mt ($15.5/mt) for October 11-20, respectively.
As the producer will have to cut production of rebar by more than 50 percent since October 19 due to energy shortages, the company has not cut prices in line with the falling spot market in China, which has been reacting to the slowdown in demand and the government’s intervention in the raw material market.
As of October 20, the average rebar price in the Chinese market was standing at RMB 5,810/mt ($939/mt) ex-warehouse, down by RMB 247/mt ($38.6/mt) or 4.1 percent from October 8, according to SteelOrbis’ data. As of October 20, rebar futures prices at Shanghai Futures Exchange declined by RMB 446/mt ($69.7/mt) or 7.76 percent to RMB 5,304/mt ($829/mt) compared to October 8.
Prices include 13 percent VAT.
$1 = RMB 6.389