China’s Jiangsu Shagang Steel has hiked prices of long-finished steel by CNY100-200/mt ($15-31/mt) while there is no change in flat steel prices for mid-April deliveries. The steelmaker lifted its rebar (HRB400,16-25 mm) prices by CNY200/mt to CNY5,250/mt ($801/mt) ex-works for deliveries in the period April 11-20. The steelmaker raised spot sales prices for the second successive ten-day period amid bullish global cues.
Finished steel inventories with Chinese suppliers remained high though ongoing production cuts and increasing demand has balanced supply and demand, supporting the high prices.
Offers for wire rod (HPB300, 8mm) rose to CNY5,350/mt ($816/mt) ex-works inclusive of 13pc VAT. Flat finished steel prices remained unchanged after a sharp rise in late-March. The steelmaker will offer HRC Q235B at CNY5,580/mt ($850) ex-works as HRC export offers rose above $870-890/mt fob China.
Demand is expected to remain strong despite strict production cuts in Tangshan province to keep pollution under control. Thus, steel prices are likely to remain bullish in Q2 2021 internationally.
Shagang Steel’s retail prices for mid-April
|Shagang Steel’s retail prices for mid-April|
|Rebar wire rod||HRB400||5450||200|
In the domestic market, prices for Q235 150mm square billet jumped 12.5-year high following a short supply of billets. Billet prices on Monday lost steam and dropped to CNY4,890/mt ($765/mt) ex-Tangshan including VAT, down CNY170/mt. Major drop was the reflection of Chinese government’s concerns about multi year high bulk commodity prices and their sustainability. Chinese steel futures recorded a major drop on Monday.
Chinese importers booked billets from ASEAN and Indian suppliers at $650-660/mt cfr China, up $20-25/mt from the prior 10-days. In the spot market, iron ore Fe 62pc prices rose to $173.5/mt cfr north China. Iron ore prices have increased by $6-7/mt in the last 10 days.