Shagang slashes longs prices by $14-28/t for late Mar sales
With the latest cuts, Shagang's HRB400 16-20mm rebar is now priced at Yuan 3,920/t, falling Yuan 100/t from March 11-20, and prices of both HPB300 6-10mm high-speed wire rod and HRB400 8-10mm bar-in-coil have been chopped by Yuan 200/t to Yuan 3,970/t and Yuan 3,960/t respectively for late March sales, all in terms of EXW and including the 13% VAT.
Shagang, also the country's leading electric-arc-furnace steelmaker, releases its pricing policy for long steel products three times a month to monitor market changes, Mysteel Global notes. Its latest price decision was in response to the slow improvement in long steel demand and falling prices of steelmaking raw materials, according to a market source.
Mysteel's survey across the 237 Chinese steel trading houses it tracks nationwide showed that their daily trading volume of rebar, wire rod and bar-in-coil averaged 130,760 tonnes/day in mid-March, lower by a marked 21.3% than the same period last year.
As of March 20, Mysteel SEADEX 62% Australian Fines for imported iron ore, for example, slid by $9.9/dmt from that on March 8 to $106.65/dmt CFR Qingdao.
"The weaker-than-expected steel consumption from end-users, plus the falling support from the cost side, also saw finished steel prices move down," the source said.
The spot price of HRB400E 20mm rebar in Shanghai – a major market for Shagang brand rebar – dropped by Yuan 110/t from March 8 to Yuan 3,580/t including the 13% VAT by March 20, according to Mysteel's assessment.
Shagang has also trimmed its steel scrap procurement prices five times this month by a total of Yuan 250/t, and it is paying scrap dealers Yuan 2,750-2,810/t for domestically processed HMS grade scrap, including delivery to its plants and the 13% VAT, as Mysteel Global reported.
Written by Rong Zhang, zhangronga@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
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