Shagang Group, China's leading private steel producer, added 200 yuan/t ($27.7/t) to its list prices for rolled long steel for sale from August 1 to August10. About this report is Mysteel Global.
The increase covers products such as rebar, wire and rod in a roll, among others.
Thus, Shagang raises prices for long-term rentals over three consecutive 10-day price cycles. In particular, according to the latest announcement, HRB400 fittings with a diameter of 16-20 mm now cost 3,550 yuan/ton.
The recent price increase by Shagang, Mysteel notes, reflected a general trend towards higher rental prices and improved market sentiment, supported by favorable macroeconomic signals from Beijing and more sustainable raw material costs.
It should be recalled that in July of this year, the global rebar market showed mixed trends. Prices in China rose sharply amid expectations of incentives, remained stable in the United States, and showed weak dynamics in Europe and Turkey. Despite local attempts to raise quotations, the overall situation remained unstable due to sluggish demand, seasonal factors, geopolitical tensions and fiscal factors.
By the end of the month, the Chinese rebar market experienced a new wave of growth – prices in Shanghai soared to $460/ton. The reason was signals about a policy to curb overproduction and stimulate demand. An additional boost came from the news of the launch of a hydropower project on the Yarlung Tsangpo River. At the same time, the rise in the price of raw materials forced steel mills to reconsider their offers upward.
