China’s steel mills lowered finished steel prices amid limited demand in the domestic and export markets as market participants moved sideways ahead of New Year holidays. 

 

Shagang Jiangsu steel mill has lowered prices by CNY250/mt ($36/mt) for the booking deliveries between Dec 21-31 period. The company is offering rebar HRB400 of 16-25mm diameter at CNY3,960/mt for late December deliveries, effective from Saturday. The steelmaker lowered its wire rod prices by CNY300/mt to CNY3,970/mt including local taxes.

 

Following the lead of major steelmakers, Yonggang Steel reduced rebar prices by CNY140/mt to CNY3,950/mt for late December deliveries. The company is offering wire rod at CNY4,050/mt including local taxes.  

 

In Eastern China, Zenith Steel lowered rebar and wire rod prices by CNY130/mt and CNY200/mt to CNY3,930/mt and CNY4020/mt, respectively for late December deliveries.

 

Ferrous scrap prices are likely to remain flat as the Chinese government continued to impose strict environmental regulations and issued Level II smog alerts in the some of the major steelmaking hubs like Tangshan and Hebei. Chinese ferrous scrap prices remained flat over the last week with Shagang Steel holding prices unchanged for #1 HMS at CNY2,780/mt and #3 HMS at around CNY2,700/mt delivered to Jiangsu mill in Zhangjiagang city.

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