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| China Steel |
Shagang Group, a major private steel producer in China, has raised prices for long steel products again for early August. This marks the third consecutive price increase in the company’s 10-day pricing cycle.
Shagang’s Price Hike Reflects Rising Demand and Stable Raw Material Costs
Shagang increased prices by 200 yuan per ton (approximately $27.7 per ton) for long steel products including rebar, wire rod, and coils. For example, HRB400 rebar with 16-20 mm diameter now costs 3,550 yuan per ton. This price adjustment aligns with rising rolled steel prices and improving market sentiment, supported by Beijing’s positive macroeconomic signals and more stable raw material costs.
Regional Market Trends and Influences on Global Rebar Prices
In July, global rebar prices showed mixed movements. Chinese prices surged due to anticipated stimulus policies, while US prices remained stable. European and Turkish markets showed weak demand amid geopolitical tensions and fiscal challenges. Furthermore, China’s new hydropower project announcement and policies aimed at curbing overproduction further stimulated domestic price gains. Meanwhile, rising raw material costs compelled steel mills to revise their prices upward.
ScrapInsight Commentary
Shagang’s continued price increases reflect cautious optimism in China’s steel sector amid supportive government policies. However, global demand remains uneven, influenced by geopolitical and seasonal factors. These dynamics suggest potential volatility in steel prices, emphasizing the need for close monitoring by market participants and policymakers.
