Posted on 02 Aug 2023
Shagang Group (Shagang), China's leading privately-owned steelmaker based in East China's Jiangsu province, has raised its rebar list prices by Yuan 100/tonne ($14/t) for sales over August 1-10, the company announced on Tuesday.
The rise in the rebar list prices brings an end to Shagang's price reductions for the prior two price periods, Mysteel Global notes.
With the latest price adjustment, Shagang's HRB400 16-22mm rebar list price rises to Yuan 3,970/t. In tandem, the company has also hiked its wire rod and bar-in-coil list prices for early August sales, both by Yuan 50/t, according to the release.
As a result, its HPB300 6-10mm high-speed wire rod is now listed at Yuan 4,060/t, and its HRB400 8-10mm bar-in-coil at Yuan 4,150/t, both in terms of EXW and including the 13% VAT, the company's pricing policy showed.
The increases in Shagang's long steel list prices were largely in sync with the recent trends in Chinese steel prices, sources said.
For example, the country's HRB400E 20mm rebar price in Shanghai, a major market for Shagang's products, was assessed by Mysteel at Yuan 3,790/t including the 13% VAT as of July 31, moving up by Yuan 60/t from that on July 20.
Shagang's ten-day pricing policy cycle is usually regarded as an indicator of market sentiment for long steel products in China, Mysteel Global notes.
"China's rebar prices are expected to continue firming against the background of low inventories and relatively stable demand," a Shanghai-based analyst predicted. But he also cautioned that the cost support from the raw materials side has been waning.
Mysteel's iron ore index for SEADEX 62% Australian Fines, for example, declined by $6.35/dmt from July 20 to $110.35/dmt CFR Qingdao as of July 31.
"In the near term, domestic steel market sentiment is likely to improve further, following a slew of stimulus policies introduced by the (Chinese) central government to boost the economy recovery," said another industry watcher.
Source:Mysteel Global
