Shagang cuts steel prices as winter onset slows demand

Chinese private-sector producer Jiangsu Shagang cut its rebar ex-works prices by 100 yuan/t ($14/t) for late October deliveries on rising supplies and sluggish demand.

Shagang's base rebar specification HRB400 with 16-25mm diameter will be offered at Yn3,800/t for late October deliveries, effective from today.

Construction steel demand is showing signs of easing as cold weather takes hold in north China. Construction steel demand typically slows in the winter months, although over the past couple of years the extent of this has been much smaller than in previous years. Steel producers in north China typically ship supplies to south and east China where winters are less severe, putting pressure on rebar prices.

Shanghai rebar prices have fallen by Yn110/t to Yn3,630/t ex-warehouse since 10 October.

China produced 21.27mn t rebar in September, up by 11.6pc from a year earlier, according to latest data provided by the national bureau of statistics. January-September output was 185.31mn t, up by 19.3pc.

Shagang on 18 October also cut its heavy melt scrap No.3 purchasing price by Yn30/t to Yn2,700/t with a total price cut of Yn90/t during 10-21 October.

Shagang did not revise prices for wire rod and small size rebar.

Shagang listed prices effective from 21 October: