Posted on 02 Apr 2025
Shagang Group (Shagang), China's leading private steelmaker headquartered in Zhangjiagang in East China's Jiangsu province, has cut its list prices of rebar, wire rod and bar-in-coil by another Yuan 50/tonne ($6.9/t) for sales during the first ten days of April, Mysteel Global has learned from its latest release posted on April 1.
Shagang's new pricing policy means the company has pared prices of its major long steel products for a third successive sales period, Mysteel Global notes. Consequently, the mill's HRB400 16-20 mm rebar is now priced at Yuan 3,350/t for April 1-10 sales, while the prices of its HPB300 6-10mm high-speed wire rod and HRB400 8-10mm bar-in-coil stand at Yuan 3,370/t and Yuan 3,460/t respectively, all in terms of EXW and including the 13% VAT.
Shagang, also the country's largest electric-arc-furnace steelmaker, usually releases the pricing policy for its long steel products every ten days to better reflect dynamic changes in market conditions. Sources remarked that its latest price cuts were in response to continuing low long steel prices in the spot market and the slow recovery in demand from building contractors.
As of March 31, the spot price of HRB400E 20mm rebar in Shanghai – a major market for the Shagang brand rebar – was lower by Yuan 10/t from the price on March 20 at Yuan 3,210/t and including the 13% VAT, according to Mysteel's assessment.
Meanwhile, Mysteel's survey across the 237 Chinese trading houses it monitors nationwide showed that during late March their spot trading volume of rebar, wire rod and bar-in-coil averaged only 111,333 tonnes/day, up by a small 0.2% from the previous ten days though lower by some 15.3% from the average for late March last year.
"Domestic long steel demand has been recovering, albeit slowly, but continuously rising production among mills is still placing some pressure on market fundamentals," said an industry watcher.
For example, over the week of March 20-26 rebar output among the 137 mills nationwide under Mysteel's tracking grew to a four-month high of 2.27 million tonnes, rising by only 0.5% on week but higher by 8.4% on year.
Meanwhile, Shagang also released its monthly pricing policy for its flat steel products for April sales on Tuesday, paring its list prices for hot-rolled coil by Yuan 100/t from March. As a result, its prices for Q235 5.5*1500mm and SPHC 4.0*1250mm hot coil land at Yuan 3,550/t and Yuan 3,560/t respectively, both including the 13% VAT.
Source:Mysteel Global
