China’s Jiangsu Shagang Group has kept finished long steel prices unchanged for the early December deliveries despite weak demand. While it raised hot-rolled coils prices by CNY50/mt ($7.62/mt) from the prior 10-days. The price rally slowed down a bit ahead of winter season in eastern China. Amid fast depleting inventories and uptrend in raw materials prices, the steelmaker has decided to keep prices stable. Prices for long steel may slightly correct, while flat steel could strong in the next 10-day period, anticipate industry participants.
Effective Dec 1-10, the company will offer its local rebar (HRB400,16-25 mm) at CNY4,300/mt ($656/mt) ex-works stable from the late November deliveries in the spot market after discounts. The company held prices for wire rod (HPB300, 8mm) flat at CNY4,710/mt ($714/mt) ex-works. All these prices are inclusive of 13pc VAT.
The company has raised the retail price of HRC (Q235B) for the first time since October-end deliveries following rising HRC prices globally. Demand for Turkey and CIS-origin HRC pushed prices to a two-year high.
Shagang raised HRC (Q235B) at CNY4,430/mt ($676/mt) ex-works for early December deliveries. CRC prices too increased by CNY50/mt. In the export markets, Chinese HRC prices ranged at $580-585/mt fob China, up $30-35/mt from the end-November deliveries.
|Shagang Steel’s retail prices for early -December|
|Products||Grade||CNY/mt||Change from late-Nov|
|Rebar wire rod||HRB400||4850||0|
Billet and domestic scrap
On Tuesday, domestic billet prices turned up again. Prices for Q235 150mm square billets were CNY3,630/mt ex-Tangshan, up CNY40/mt from Monday. Also, futures for rebar and HRC recorded an uptick by 1-3pc on Tuesday.
Domestic scrap procurement prices in China reached a 7.5-year high amid strong demand. The electric-arc-furnace (EAF) steelmaker, maintained its steel scrap procurement prices high in order to secure materials amid short supply. Domestic scrap traded at CNY2,700-2,750/mt delivered mill for HMS 6-10mm thickness.