Posted on 05 Jan 2022
Shagang Group, China's largest privately-owned steelmaker headquartered in East China's Jiangsu, has cut its long steel list prices of rebar, wire rod, and bar-in-coil by Yuan 100/tonne ($15.7/t) for domestic sales over January 1-10 from the last 11 days of December. The steelmaker cited lacklustre demand in winter and market uncertainties for the new year.
With the latest cuts, Shagang's prices of HRB400 16-25mm rebar, HPB300 6-10mm wire rod and HRB400 8-10mm bar-in-coil decline to Yuan 4,900/t, Yuan 5,110/t and Yuan 5,200/t respectively, all in terms of EXW and including the 13% VAT, according to its pricing policy.
"Despite the continuous falls in domestic steel prices, many Chinese traders are tending to stand on the sidelines. They're cautious about stocking up steel products as current prices are still higher than their expectations for the winter period," a steel trader based in East China said.
"Domestic steel demand may continue to fall as the weather gets colder and as the Chinese New Year (CNY) holiday gets closer," he added. This year's CNY runs from January 31 to February 6, Mysteel Global notes.
As of December 31, China's national price of HRB400E 20mm dia rebar, a key indicator of the Chinese steel market dynamics, had decreased for the ninth working day to reach Yuan 4,726/t including the 13% VAT, or down Yuan 151/t in total from that on December 20, according to Mysteel's assessment. However, the price was still higher by Yuan 359/t on year.
|
Shagang's premiums for other long products over Jan 1-10 |
|
|
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
