Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for all long steel products for June 1-10. Accordingly, the company has raised its offer prices for rebar and debar-in-coil by RMB 50/mt ($7/mt) to RMB 4,070/mt ($572/mt) and RMB 4,110/mt ($579/mt), respectively. All prices are on ex-works basis. The decision to increase prices for both longs and flats by the company has been taken despite the recent gradual decline in futures prices in China amid demand concerns. However, some market sources believe that the slowdown of production due to planned repairs in June may support spot prices in some cases.
For the May 21-31 period, the producer had kept its offer prices for rebar and debar-in-coil stable at RMB 4,020/mt ($566/mt) and RMB 4,060/mt ($572/mt), ex-works, respectively.
As of May 31, the average rebar price in the Chinese market was standing at RMB 3,750/mt ($528/mt) ex-warehouse, decreasing by RMB 33/mt ($4.6/mt) or 0.9 percent from May 20, according to SteelOrbis’ data.
As of May 31, rebar futures at the Shanghai Futures Exchange were at RMB 3,706/mt ($522/mt), decreasing by RMB 29/mt ($4.1/mt) or 0.8 percent since May 20, while decreasing by 1.78 percent compared to the previous trading day, May 30.
Prices include 13 percent VAT.