Shagang rolls over long steel prices for early Apr sales
Consequently, the steel giant's HRB400 16-20mm rebar is still priced at Yuan 3,920/tonne ($542/t) for early April, the price of its HPB300 6-10mm high-speed wire rod stays at Yuan 3,970/t, and its HRB400 8-10mm bar-in-coil price remains at Yuan 3,960/t, all in terms of EXW and including the 13% VAT.
Shagang's decision to hold onto long steel prices reflected its uncertainties about near-term outlook of domestic steel market although April is usually a robust season for steel use in China. Dragged by the ailing property sector and slow growth in infrastructure construction, the overall long steel consumption across China so far has been weaker than the same period last year, according to a source. He also noted that speculative activities in the steel market have also shrunk significantly.
During late March, Mysteel's survey of spot steel sales among the 237 trading houses it tracks across China showed that their trading volume of rebar, wire rod and bar-in-coil averaged 131,379 tonnes/day, lower by a marked 20.8% on year and well below the threshold of 200,000 t/d during the peak season.
As of March 29, the spot price of HRB400E 20mm rebar in Shanghai – a major market for Shagang's longs items – had dwindled by Yuan 150/t from the price on March 20 to Yuan 3,430/t and including the 13% VAT, according to Mysteel's assessment.
In tandem, Mysteel's iron ore index for SEADEX 62% Australian Fines had declined by $8.85/dmt during the same period to $97.8/dmt CFR Qingdao by March 29.
On Monday, Shagang also released its new monthly pricing policy for its flat steel products for April sales, lowering its list prices for hot-rolled coil (HRC) by Yuan 300/t from March. As a result, its prices for Q235 5.5*1500mm and SPHC 4.0*1250mm hot coil stand at Yuan 4,000/t and Yuan 4,010/t respectively this month, both including the 13% VAT.
Written by Rong Zhang, zhangronga@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
Kyoei Steel holds rebar prices for May
Apr 24, 2024 12:15
Shagang lifts longs list prices by $7/t for late Apr sales
Apr 22, 2024 16:30
Shagang holds long steel prices again for mid-April sales
Apr 11, 2024 11:45
Nippon Steel holds H-beam prices as dealer stocks rise
Mar 25, 2024 10:15
Shagang slashes longs prices by $14-28/t for late Mar sales
Mar 21, 2024 11:35