Shagang Has Cut Its Rebar Price and Held Its Wire Rod Price

Shagang has cut its rebar price and held its wire rod price, while Hebei Steel Group has kept its rebar price unchanged but raised its wire rod price. The price changes from two of China's biggest long products mills reflect tighter supply of wire rod in recent weeks, market participants said. "Supply of wire rod is very tight in the spot market, as mills were more willing to produce rebar and coiled rebar in the past two months," an analyst in Beijing said. Shagang, based in eastern China, has taken 50 yuan ($8) off its rebar price for the second ten days of August, and is now selling grade III rebar of 16-25mm diameter at 5,070 yuan per tonne. Its 6.5mm wire rod will be unchanged at 5,020 yuan per tonne. Hebei Steel, which dominates the market in the northeast, is selling grade III rebar at 5,080 yuan per tonne, and 6.5mm wire rod at 4,980 yuan per tonne, up 150 yuan per tonne. Margins for rebar, a key construction steel product, grew dramatically in response to a surge in construction demand after Beijing upped the pace of its state housing project. In the Beijing spot market, 6.5mm wire rod is unchanged at 4,900-5,040 yuan per tonne, while Grade III rebar with 16-25mm diameter is also unchanged at 4,930-5,090 yuan. In the Shanghai spot market, 6.5mm wire rod rose 30 yuan at 4,930-4,990 yuan per tonne, while Grade III rebar with 16-25mm diameter is unchanged at 4,670-4,980 yuan. China's wire rod production in July fell by 4.0% month-on-month to 10.23 million tonnes, while rebar production rose by 0.9% to 13.21 million tonnes, said the national statistics bureau on Tuesday. Wire rod output was 18.6% than year earlier, while rebar production was up 22.3% year-on-year. Source: metalbulletin.com