Posted on 13 Dec 2022
Shagang Group (Shagang), China's leading privately-owned steelmaker in East China's Jiangsu province, has raised its rebar list prices by Yuan 100/tonne ($14.3/t) for domestic dales during December 11-20, according to the company's pricing policy released on December 11, after having rolled over bar prices for its December 1-10 sales cycle.
With the new price adjustment, Shagang's HRB400 16-25mm dia rebar is priced at Yuan 4,050/t, while its HPB300 6-10mm high-speed wire rod remains at Yuan 4,360/t, and its HRB400 8-10mm bar-in-coil is still at Yuan 4,450/t, all in terms of EXW and including the 13% VAT, according to the release.
Shagang's decision to lift its rebar prices follows its recent rise in scrap buying prices. Since December 9, the company – also the country's largest electric-arc furnace steel producer – had raised its steel scrap procurement prices by Yuan 50/t. Its buying price for domestically-produced HMS grade scrap is now at Yuan 3,010-3,070/t including the delivery and the 13% VAT, as reported.
In addition, market sources said the latest pricing policy reflected the strengthening of domestic steel price in the past few days and the improved market sentiment following the country's further optimization of its COVID-19 prevention and control measures.
As of December 9, the spot price of HRB400E 20mm rebar in Shanghai – a major market for Shagang brand rebar – had gained a total of Yuan 80/t from the price on November 30 to reach Yuan 3,850/t including the 13% VAT, according to Mysteel's assessment.
Meanwhile, the better sentiment saw the daily trading volume of rebar, wire rod and bar-in-coil among the 237 Chinese trading houses Mysteel regularly monitors climb by 8,499 tonnes/day or 6.2% from the average of the previous ten days to average 144,518 t/d in early December.
Source:Mysteel Global
