Posted on 03 Dec 2021
Shagang Group, China's largest privately-owned steel producer headquartered in East China's Jiangsu, has rolled its long steel list prices for domestic sales over December 1-10 after the serial cuts for the whole November, which has been interpreted by the market sources as an act to feel for the market direction.
Shagang's prices of HRB400 16-25mm rebar, HPB300 6-10mm wire rod and HRB400 8-10mm bar-in-coil, thus, stay at Yuan 4,800/tonne ($754/t), Yuan 5,060/t and Yuan 5,150/t respectively, all in terms of EXW and including the 13% VAT, according to its pricing policy.
For November, Shagang cut its long steel prices by Yuan 1,200-1,350/t in total, as reported, and the mill's latest price policy is rather representative of the dilemma among many domestic steel producers at present, as finished steel stocks have been declining at their works but demand is expected to weaken in winter months, a steel trader based in Jiangsu commented.
"Chinese steel mills are trying to hold onto their list prices on lower steel stocks, but at the same time they will be willing to give some discounts to their sales agents to encourage steel buying when they still can (before demand is getting too weak with the days getting colder)," he said.
Mysteel's latest survey across China's 184 Chinese steel mills showed that their rebar and wire rod stocks declined more substantially than flats by November 24, down 5.4% and 3.1% on week respectively, as reported.
It is encouraging that "both the market sentiment and steel trading have turned for the better since the start of December, now that negative factors such as power supply shortage, expected cold winter and overly high steel prices have either been digested or improved," a steel trader in East China added, though he remained cautious.
Starting late December, domestic steel demand is likely to be dampened with the halts of construction activities when days get colder, and steel sales with replenishments before the Chinese New Year may come to an end, according to him.
For 2022, the Chinese New Year holiday will start on February 1.
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Shagang's premiums for other long products over December 1-10 |
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Specification |
Premium |
|
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
