China’s eastern region steelmaker, Shagang Jiangsu group announced finished steel sale prices for end-October deliveries. The steelmaker has decided to roll over its rebar prices for the fifth successive 10-day sales period. Asian markets remained a bit slow awaiting clarity on the global markets. The availability of wire rod remained weak in the market, however, the supply of other long and flat products is likely to ease down amid increase in production.
Chinese currency CNY has appreciated strongest in 27 months against the US Dollar, which stands at CNY6.6275 against $1 which is highest since July 2018. The equivalent prices have increased by $7/mt from the levels mid-October.
Effective Oct 21, the company has announced new prices against mid-October shipments. Shagang Steel will offer its rebar (HRB400,16-25 mm) at CNY3,900/mt ($585/mt) ex-works for deliveries during Oct 21-30. The company raised prices for wire rod by CNY50/mt to CNY4,110/mt ($598/mt) ex-works. It’s HRB400 8-10mm bar-in-coil price was at CNY4,150/mt. All these prices are in terms of ex-works and including the 13pc VAT.
Shagang Steel held it’s finished flat steel prices stable too. The company’s retail price for HRC Q235B is at CNY4,380/mt ($657/mt) ex-works flat from mid-October deliveries. In the export market, Chinese steelmakers have raised offers to $520-540/mt fob China.
Shagang steel’s finished steel retail prices for late October
|Rebar wire rod||HRB400||4250|
|Hot rolled coil||Q235B||4380|
Raw material prices gaining
Australian iron ore import prices on Oct 21 for Fe content 62pc cfr North China was at $120/mt cfr, up $0.6/mt from the prior day. The demand sentiments in the domestic market have remained strong. Shagang Steel raised domestic scrap prices and finished steel prices for end October deliveries. The weekly Davis Index for the HMS 1&2 (80:20) settled at CNY2,675/mt ($400/mt) delivered mill, up by CNY10/mt from the prior Tuesday.
Prices for Q235 150mm square billets in Tangshan, North China’s Hebei province rose by CNY10-20/mt to CNY3,400-3,420/mt ex-works including the 13pc. Few small rebar manufacturers resumed production after pausing operations for around 15 days to control pollution. Chinese September steel output rose by 0.9pc from the previous month as mills ramped up production to meet demand from infra projects. Billet import interest, however, has remained limited.