Shagang increases rebar ex-works prices

Chinese private-sector steel producer Jiangsu Shagang increased its rebar ex-works prices by 60 yuan/t ($9/t) for mid-November deliveries, as rebar inventories extended their falls into November to support spot prices.

Shagang's base rebar specification HRB400 with 16-25mm diameter will be offered at 3,860 yuan/t ($552/t) for mid-November deliveries, effective from 11 November.

Construction demand remains firm for rebar in main markets and nationwide rebar stocks are falling. Nationwide stocks held by trading firms and steel mills fell by around 870,000t over the two weeks to 8 November, while weekly output fell by more than 100,000t, third-party data show. North China coastal shipments are picking up to Shanghai and other areas running low on rebar inventories.

Shagang offer rebates to agents on previous sales when its ex-works prices have been higher than market levels in the main east China cities. But this time the mill cancelled its rebate for rebar given the latest rebound in secondary markets. Shanghai rebar prices have increased by Yn90/t to Yn3,750/t ex-warehouse since 31 October.

Shagang also increased its wire rod prices and small size rebar in coil prices by Yn60/t.

Shagang listed prices effective from 11 November: