Posted on 02 Jul 2021
Shagang Group, China’s largest rebar producer headquartered in East China’s Jiangsu province, announced on July 1 to roll over rebar list price for sales over July 1-10, or having taking a pause after having cut the list price by a total of Yuan 1,050/tonne ($162.5/t) four rounds since May 20, Mysteel Global noted.
For the first ten days of July, Shagang will remain the high-speed wire rod ex-works price unchanged from June 21-30 too, though it will cut Yuan 100/t off its bar-in-coil price, according to the company’s latest pricing policy.
With the latest pricing policy, Shagang’s HRB400 16-25mm rebar will still be offered at Yuan 5,100/t, the HPB300 6-10mm wire rod at Yuan 5,610/t, and the HRB400 8-10mm bar-in-coil price falls to Yuan 5,600/t, all including the VAT.
The rollover in Shagang’s long steel prices in general, however, has failed to ease the market concern on near-term demand, according to market sources.
“Recently, the contrast between supply and demand is rather outstanding,” an official from a major steel mill in East China observed, as “demand has slowed significantly in the hot and humid summer, and many construction projects have been halted too for the celebration of centenary (of the Communist Party of China), while supply has been comparatively steady,” he added.
Mysteel’s latest survey showed that stocks of five major finished steel products in the commercial warehouses of China’s 132 cities grew for the second week over June 18-24, up 1.7% on week to 22.3 million tonnes, with rebar posting the largest rise, up 142,900 tonnes or 1.3% on week to around 11 million tonnes.
“The market situation is unlikely to see any notable improvement this month, and demand will stay weak in the summer month,” the official anticipated, voicing out the prevalent market understating nowadays.
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Shagang’s premiums for other long products over July 1-10 |
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Specification |
Premium |
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HRB400 10mm dia rebar |
Yuan 160/t |
|
HRB400 12mm dia rebar |
Yuan 100/t |
|
HRB400 14mm dia rebar |
Yuan 30/t |
|
HRB400 28-32mm dia rebar |
Yuan 60/t |
|
HRB400 36mm/40mm dia rebar |
Yuan 250/t |
|
HRB500 14-25mm |
Yuan 300/t on top of HRB400 base prices |
|
HRB400 6mm dia bar-in-coil |
Yuan 300/t |
|
Anti-seismic rebar |
Yuan 30/t |
Source:Mysteel Global
