Posted on 22 Jul 2025
Shagang Group (Shagang), China's leading private steel producer headquartered in Zhangjiagang in East China's Jiangsu province, has raised its list prices of rebar, wire rod, and bar-in-coil by Yuan 50/tonne ($7/t) for sales over July 21-31, the company announced on Monday. The latest hike follows the Yuan 50/t increase it implemented during the previous sales period, as reported.
With the adjustment, Shagang's HRB400 16-20mm rebar now stands at Yuan 3,350/t, and its prices for HPB300 6-10mm high-speed wire rod and HRB400 8-10mm bar-in-coil have been raised to Yuan 3,420/t and Yuan 3,510/t respectively for the same sales period, all in terms of EXW and including the 13% VAT.
Shagang, also the country's largest electric-arc-furnace maker, releases its pricing policy for long steel products three times a month to better align with domestic market dynamics, Mysteel Global notes.
The latest price increase reflects the strengthening momentum of China's domestic spot steel market, supported by growing optimism after the series of positive macroeconomic signals from Beijing recently, as reported. In addition, firm steelmaking raw materials prices continue to offer cost-side support, a market insider commented.
By July 18, the spot price of HRB400E 20mm rebar in Shanghai – a major market for Shagang's long steel products – had jumped by Yuan 60/t from the price on July 10 to a two-month high of Yuan 3,250/t and including the 13% VAT, according to Mysteel's assessment.
During the same period, Mysteel's iron ore index for SEADEX 62% Australian Fines had gained $1.65/dmt to reach $99.75/dmt CFR Qingdao. Meanwhile, China's national composite coke price had climbed by Yuan 45.5/t to reach Yuan 1,158.7/t including VAT, reflecting stronger raw materials costs.
Market optimism also saw the most-traded October rebar contract on the Shanghai Futures Exchange move up by Yuan 68/t from the settlement price on July 18 to close at Yuan 3,224/t when the daytime trading session ended on July 21.
Despite firmer prices, market fundamentals for long steel remain soft. Mysteel's survey of 237 trading houses it follows nationwide showed their daily long steel sales averaged 94,908 tonnes/day in mid-July, down 7.9% from early July and by a significant 20.6% drop on year, as end-users remain cautious about procurement in the off-season.
Previously, Shagang had decided to raise its scrap procurement prices by Yuan 50/t effective from July 12 to attract more deliveries from scrap dealers, as reported. The mill is currently paying Yuan 2,440-2,500/t for domestically-sourced HMS grade scrap including delivery and the 13% VAT.
Source:Mysteel Global
