Posted on 03 Mar 2023
Shagang Group (Shagang), China's leading privately-owned steel producer headquartered in East China's Jiangsu, is lifting domestic list prices of its hot-rolled coils by Yuan 100/tonne ($14.5/t) for March sales, the mill announced to dealers on March 1.
The rise is the steel giant's third upward adjustment for these flat products after it added Yuan 200/t and Yuan 250/t in January and February respectively, Mysteel Global notes.
Shagang's HRC list prices, which the steel giant releases every month, are viewed as a bellwether of flat steel market sentiment, Mysteel Global notes. Shagang is the major Chinese steel producer to publicly announce such prices on a regular basis. Competing mills such as Baosteel only reveal price-change increments.
This month's Yuan 100/t adjustment lifts the list price of Shagang's Q235 5.5mm HRC to Yuan 4,600/t for March sales and that for its SPHC 4.0mm HRC to Yuan 4,610/t, according to the statement. The prices listed above are in terms of EXW and including the 13% VAT, Mysteel Global notes.
Shagang seems to keep tracking the strengthening price trend of hot coils, a Shanghai-based analyst said. Mysteel's latest survey assessed China's national price of Q235 4.75mm HRC at Yuan 4,339/t including the 13% VAT as of March 1, or up by Yuan 92/t from February 1.
Besides, high production costs also lent some support to HRC prices. As of March 1, Mysteel's SEADEX 62% Australian Fines was assessed high at $126.65/dmt CFR Qingdao, despite an on-month decline of $0.65/dmt.
Source:Mysteel Global
