Posted on 14 Sep 2021
Shagang Group, China’s largest privately-owned steel producer based in Jiangsu of East China, announced on September 11, the start of its latest ten-day sales cycle, to raise its long steel prices by Yuan 200-350/tonne ($31-54/t), just as many other steel mills in the province, on the prospect of lower output while better demand in the coming days, according to market sources.
After having rolled over longs prices over September 1-10, for this ten-day period, Shagang has raised its HRB 16-25mm rebar by Yuan 350/t to Yuan 5,700/t for ten days of sales until September 20, adding Yuan 200/t onto its HPB300 6-10mm wire rod to Yuan 5,910/t and Yuan 300/t onto its HRB400 8-10mm bar-in-coil to Yuan 6,000/t, all in terms of EXW and including the 13% VAT, according to its latest release.
Steel producers in Jiangsu have scaled down production or scheduled new maintenance in September, as Jiangsu, the country’s second largest steel producing province after North China’s Hebei, will probably see local steel output down as with its close monitoring of local industrial plants’ power consumption since September 8 until the end of this month, as reported.
“Steel mills will surely further trim their production now that the government is trying to limit (mills’) coal consumption via curtailing their power use,” an official from a Jiangsu-based major steelmaker said.
Among the series of maintenance plans announced recently, Shagang plans to stop two rebar rolling lines in sequence over September 16-30, and this may lead to a reduction of rebar output by around 36,400 tonnes, according to Mysteel’s tracking.
On the other hand, “Trading has been more active partly on the expectation of lower supplies later on as well as the replenishment needs among the steel traders and end-users for Mid-Autumn Festival (September 19-21) and China’s National Day holiday (October 1-7),” a Jiangsu-based industry source noted, and “steel mills, thus, have been able to raise their prices notably,” she added.
The latest long steel price inclines will also help Shagang, China’s leading EAF-based steel producer, to absorb rising cost from scrap as it just raised its steel scrap procurement price by Yuan 80/t effective September 3, paying Yuan 3,780-3,840/t for HMS grade scrap including the delivery and the 13% VAT.
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Shagang’s premiums for other long products over Sept 11-20 |
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Specification |
Premium |
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HRB400 10mm dia rebar |
Yuan 160/t |
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HRB400 12mm dia rebar |
Yuan 100/t |
|
HRB400 14mm dia rebar |
Yuan 30/t |
|
HRB400 28-32mm dia rebar |
Yuan 60/t |
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HRB400 36mm/40mm dia rebar |
Yuan 250/t |
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HRB500 14-25mm |
Yuan 300/t on top of HRB400 base prices |
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HRB400 6mm dia bar-in-coil |
Yuan 300/t |
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Anti-seismic rebar |
Yuan 30/t |
Source:Mysteel Global
