Posted on 22 Feb 2023
Shagang Group (Shagang), China's largest privately-owned steel producer headquartered in East China's Jiangsu, has decided to keep its list prices of major long steel products unchanged for domestic sales over February 21-28, according to the company's latest pricing policy announced on Tuesday morning.
Shagang's price statement covers rebar, wire rod and bar-in-coil, and the list prices of its longs have been rolled over for two successive 10-day sales periods, Mysteel Global notes.
With the new policy, the steel giant's HRB400 16-25mm rebar is still priced at Yuan 4,400/tonne ($642/t), HPB300 6-10mm high-speed wire rod at Yuan 4,560/t, and HRB400 8-10mm bar-in-coil at Yuan 4,650/t, all in terms of EXW and including the 13% VAT.
"More end-users have resumed their operations recently, leading to a gradual release of demand," said a Shanghai-based industry watcher. "But we need to maintain our focus on the changes of the actual demand," he cautioned.
The daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 trading houses Mysteel tracks nationwide reached an average of 153,272 tonnes/day during mid-February, jumping by 75.8% or 66,086 t/d from early February.
As for finished steel prices, the spot price of HRB400E 20mm dia rebar in Shanghai – a major market for the Shagang brand rebar, had increased by Yuan 80/t from the price on February 10 to Yuan 4,220/t including the 13% VAT as of February 20, mainly due to the improvement in market sentiment, Mysteel's assessment showed.
On the other hand, Shagang – also the country's leading electric-arc-furnace mill – announced on February 20 that it was lifting its steel scrap procurement prices by Yuan 50/t. Currently, Shagang is paying Yuan 3,200-3,260/t for HMS grade scrap including delivery and the 13% VAT.
Source:Mysteel Global
