China’s Shagang consistently raises prices for long products

Shagang Group, a leading private steel producer in China, has added 200 yuan/t ($27.7/t) to its list prices for long steel products for sale from August 1 to 10, according to Mysteel Global.

The increase covers products such as rebar, wire rod, and wire rod coils, among others.

Shagang has thus raised its prices for long products for three consecutive 10-day pricing cycles. Specifically, according to the latest announcement, the company’s HRB400 rebar with a diameter of 16-20 mm now costs 3,550 yuan/ton.

The recent price increase by Shagang, Mysteel notes, reflected the general trend of rising rolled steel prices and improving market sentiment, supported by favorable macroeconomic signals from Beijing and more stable raw material costs.

In July this year, the global rebar market showed mixed trends. Prices in China rose sharply amid expectations of stimulus measures, remained stable in the US, and showed weak dynamics in Europe and Turkey. Despite local attempts to raise prices, the overall situation remained unstable due to sluggish demand, seasonal factors, geopolitical tensions, and fiscal factors.

The Chinese rebar market experienced a new wave of growth by the end of the month, with prices in Shanghai soaring to $460/t. This was due to signals about policies to curb overproduction and stimulate demand. Additional momentum was provided by news of the launch of a hydropower project on the Yarlung Tsangpo River. At the same time, rising raw material prices forced steel mills to revise their offers upward.