Posted on 13 Oct 2021
Citing the ongoing shortages of supply, Shagang Group, China’s largest privately-owned steel producer in terms of capacity, is hiking the list prices of its long steel products by another Yuan 100-150/tonne ($15.5-23.3/t) for sales over October 11-20, it announced to its sales agents on October 11.
Monday’s decision means Shagang has now raised its list prices for four successive ten-day domestic sales cycles, Mysteel Global notes. Ongoing power rationing in East China’s Jiangsu province, where Shagang is located, is forcing steelmakers to curb production, commented an official from a local electric-arc-furnace steel producer, resulting in shortages of steel, especially of long steel products for construction use.
“Our production is still seriously constrained, though it’s slightly better this month than in September when the curtailment was the severest,” he said, adding that for a certain period of time, his mill had even stopped providing offers to the market – simply because it had no stocks at all.
“Even now, we can only supply limited volumes of products for a few specifications per day,” he admitted.
For October 11-20, Shagang raised its rebar prices by another Yuan 100/t, taking its base price for HRB 16-25mm rebar to Yuan 6,050/t. The mill also added another Yuan 150/t on to its wire rod and bar-in-coil price, so that its HPB300 6-10mm wire rod price is now at Yuan 6,260/t and its HRB400 8-10mm bar-in-coil price is at Yuan 6,350/t. All prices are in terms of EXW and include the 13% VAT.
A Shanghai-based building contractor is struggling with the steel supply disruptions resulting from the production cuts in nearby Jiangsu province. “It is really hard to source rebar from the market these days, and the prices have soared, forcing us to re-negotiate the budget with the project owner,” he told Mysteel Global.
Indeed, the dearth of supply and the rising procurement costs the mills are incurring mean that market transaction prices have been pushed up higher. As of Monday, the HRB400E 20mm dia rebar price in Shanghai, for example, had increased by Yuan 540/t on month to Yuan 6,070/t including the VAT, only Yuan 50/t lower than its historical high achieved on May 10 this year, according to Mysteel’s data.
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Shagang’s premiums for other long products over October 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 |
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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
