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 raised its offer prices for high-speed wire rod, bar-in-coil and rebar by RMB 300/mt ($45.4/mt) to RMB 4,510/mt ($682.6/mt) and RMB 4,550/mt ($688.7/mt) and RMB 4,250/mt ($643.3/mt), respectively. All prices are on ex-works basis.
The producer had raised its offer prices for high-speed wire rod and bar-in-coil by RMB 100/mt ($14.9/mt) and increased its offer prices for rebar by RMB 50/mt ($7.45/mt), for the November 1-10 period.
The recent sharp price increases by Shagang Group are attributable to the recent big gains in the spot market in China, driven by firm demand and the sharp rise in futures prices. As of November 10, the average rebar price in the Chinese market was standing at RMB 4,163/mt ($630/mt) ex-warehouse, rising by RMB 266/mt ($40.3/mt) from October 30, according to SteelOrbis’ data. As of November 10, rebar futures prices at Shanghai Futures Exchange indicated an increase of RMB 124/mt ($18.8/mt) or 3.35 percent to RMB 3,826/mt ($579/mt) compared to October 30.
$1 = RMB 6.607