Posted on 14 Mar 2023
Shagang Group (Shagang), China's leading privately-owned steelmaker in East China's Jiangsu province, has raised its rebar list prices by Yuan 50/tonne ($7.3/t) for sales over March 11-20, according to the company's pricing policy released on March 11. The company had previously rolled over its bar prices for three straight sales periods, Mysteel Global noted.
With the new price adjustment, Shagang's HRB400 16-25mm dia rebar is now priced at Yuan 4,450/t while its price for HRB400 8-10mm bar-in-coil is now Yuan 4,700/t, also higher by Yuan 50/t, all in terms of EXW and including the 13% VAT. On the other hand, Shagang's price for its HPB300 6-10mm high-speed wire rod remains at Yuan 4,560/t, according to the release.
Market sources said the steel giant's latest pricing policy reflected the rise in steel sales in the physical market and the strengthening of domestic steel prices lately.
Spot sales of construction steel including rebar, wire rod and bar-in-coil among the 237 Chinese trading houses Mysteel regularly tracks recovered by 28,462 tonnes/day or 18.4% from late February's average to 183,400 t/d on average in early March.
Meanwhile, the country's national price of HRB400E 20mm dia rebar – an indicator of the domestic steel market dynamics – had gained a total of Yuan 80/t from the end-February price to reach Yuan 4,387/t including the 13% VAT on March 10, the highest since July 1 2022, according to Mysteel's assessment.
Market optimism about near-term business conditions saw the most-traded May rebar contract on the Shanghai Futures Exchange climb for the fifth straight trading day on March 13, rising by another Yuan 43/t from the settlement price on March 10 to close at Yuan 4,371/t when the daytime trading session ended.
On the other hand, Shagang – also the country's largest electric-arc furnace steel producer – raised its steel scrap procurement prices by Yuan 80/t starting March 11. Its buying price for domestically-produced HMS grade scrap is now at Yuan 3,280-3,340/t including the delivery and the 13% VAT, as reported.
Source:Mysteel Global
