Posted on 24 Sep 2024
Shagang Group (Shagang), China's leading private steelmaker headquartered in Zhangjiagang in East China's Jiangsu province, has raised its list prices of rebar, wire rod, and bar-in-coil by Yuan 100/tonne ($14.2/t) for sales over September 21-30, after having rolled over the prices during its previous sales cycle, the company announced on Saturday.
With the latest pricing policy, Shagang's HRB400 16-20mm rebar is now priced at Yuan 3,600/t, and its prices for HPB300 6-10mm high-speed wire rod and HRB400 8-10mm bar-in-coil have been raised to Yuan 3,520/t and Yuan 3,610/t respectively, all in terms of EXW and including the 13% VAT.
The steel giant's price rise largely reflected the improvement in market sentiment stemming from strengthening domestic spot steel prices and resilient steelmaking raw materials costs, according to a market source. Hopes that demand will climb as the weather becomes more pleasant for outdoor building activities were also a factor, she said.
For example, by September 20 the spot price of HRB400E 20mm rebar in Shanghai – a major market for Shagang's long steel products – had jumped by Yuan 80/t from the price on September 10 to Yuan 3,310/t and including the 13% VAT, according to Mysteel's assessment.
Meanwhile, China's national composite coke price under Mysteel's assessment had swelled by Yuan 48/t to Yuan 1,592.5/t and including the 13% VAT over the same period.
On the demand side, Mysteel's survey among the 237 Chinese steel trading houses it tracks nationwide showed that during mid-September, their daily trading volume of long steel items of rebar, wire rod and bar-in-coil had picked up by 8% or 8,565 tonnes/day from early September to average 115,253 t/d.
"As the weeklong National Day holiday (over October 1-7) approaches, some end-users will opt to stock up steel products in advance," said another market insider. He noted that this would also moderately boost spot trading in the domestic steel market.
Source:Mysteel Global
