China’s eastern region steelmaker Shagang Jiangsu group raised finished flat steel prices by CNY150/mt ($22/mt) for early September deliveries. The company announced new prices for early September shipments on September 1.
Shagang will offer HRC Q235B material at CNY4,380/mt ($641/mt) ex-works, up CNY150/mt ($22/mt) from late August deliveries. SPHC coils (the equivalent to of SAE1006) is being offered at CNY4,390/mt ($643/mt) ex-works Jiangsu.
Construction activities in China were impacted by heavy floods and pollution-related curbs in Tangshan. Demand for rebar was weaker than wire rod and other flat steel products. Automotive steel demand is recovering but production levels are high than daily consumption rates. Chinese finished steel demand is expected to remain high in the next two months amid suitable weather conditions that support consumption.
|Shagang steel’s finished steel retail prices for September 1-10|
|Products||Grade||CNY/mt||Change from late-Aug|
|Rebar wire rod||HRB400||4200||50|
|Hot rolled coil||Q235B||4380||150|
Long steel demand to improve
Shagang Steel in Jiangsu province is offering rebar HRB400 of 16-25mm diameter at CNY3,900/mt ($569/mt) ex-works for September 1-10 deliveries unchanged from late August deliveries. The steelmaker, however, increased its wire rod (HPB300, 8mm) prices to CNY4,060/mt ($593/mt) ex-works for early September shipments.
Ferrous scrap high
Chinese steel mills have ramped up their consumption of ferrous scrap amid a sharp rise in spot iron ore prices. Squeezing profit margins of blast furnaces can force electric arc makers to book more ferrous scrap cargoes in China. Chinese ferrous scrap prices remained on an uptrend last week with Shagang Steel paying CNY50/mt higher for domestic #2 HMS (6-10mm thickness) purchases at CNY2,750-2,800/mt delivered to Zhangjiagang mill higher than the prior week, inclusive of 13pc VAT.