Shagang steel lifted its rebar (HRB400,16-25 mm) prices by CNY200/mt to CNY5,050/mt ($770/mt) ex-works for early-April deliveries. The steelmaker raised spot sales prices after keeping them steady for March shipments. Yong steel and Zenith steel raised long steel prices by CNY100/mt for early-April deliveries.
China’s Jiangsu Shagang Group has lifted prices of long and flat finished steel products by CNY100-300/mt ($15-46/mt) for early-April deliveries. Despite high finished steel inventories at Chinese mills, most producers increased prices amid a pick up in production levels. Demand is expected to remain strong but the government has imposed strict production cuts in Tangshan province to keep pollution under control. Steel prices are likely to remain bullish in Q2 2021.
Shagang’s offers for wire rod (HPB300, 8mm) rose to CNY5,150/mt ($762/mt) ex-works inclusive of 13pc VAT.
Taking a cue from the sharp rise in international flat steel prices, the highest price hike was made for HRC products. The steelmaker offered HRC Q235B at CNY5,580/mt ($850) ex-works as HRC export offers rose above $850-870/mt fob China.
|Shagang Steel’s retail prices for early-April|
|Rebar wire rod||HRB400||5250||150|
In the domestic market, prices for Q235 150mm square billet jumped to a 12.5-year high following a shortage of domestic billets. Billet prices on Thursday were at CNY4,800/mt ($731.5/mt) ex-Tangshan including VAT, up CNY180/mt from March 23. Chinese importers increased inquiries for billet imports targeting $630-640/mt cfr China. In the spot market, iron ore Fe 62pc prices rose to $167/mt cfr north China. Iron ore prices have increased by $10-12/mt in the last 10 days.
China-based Yong steel and Zenith steel raised prices by CNY100/mt for early-April deliveries. Zenith Steel lifted rebar and wire rod prices by CNY100/mt each to CNY5,000/mt and CNY5,150/mt ex-works, respectively.
Chinese government’s green goals
China will ensure its crude steel output drop in 2021 and launch a nationwide investigation into the implementation of steel capacity cuts since 2016, the top economic planner NDRC and the industrial ministry said on Thursday. The Tangshan government has asked steelmakers to curb steel production by 30-50pc.