Shagang nudges rebar prices up while spot slides
Eastern China's Shagang has tweaked its rebar prices upwards by RMB 50/tonne ($7/t) for mid-August delivery (11-20 August) and kept wire rod prices unchanged from early August levels. With the price change Shagang announced on 11 August, the new price for 18-25mm HRB335 has been lifted to RMB4,670/t ($683/t) while the price of its 6.5mm wire rod remains at RMB 4,650/t, both including 17% VAT. Just what strategy Shagang is pursuing is a mystery but certainly, it has not helped to stabilize the spot market in this region of China. In Hangzhou, prices of Shagang-sourced 18-25mm HRB335 rebar have slipped to about RMB 4,200-4,250/t, down by as much as RMB 400/t since 5 August. Meanwhile, beginning 10 August Shanghai market prices for 18-25mm HRB335 prices have further declined by about RMB 200/t to RMB 4,090-4,140/t. "No one is buying, even at a price of RMB 4,090/t," a Shanghai trader tells Steel Business Briefing, adding that he had heard some traders had lowered their prices even to RMB 4,050/t. Beijing traders are offering 16-25mm HRB335 rebar in a range of RMB 4,470-4,600/t, also down by about RMB 400/t compared with 6 August. "The market prices are confusing; many small traders have felt pressure of high inventories and want to speed up sales, but buyers would not purchase when the prices are rapidly falling," one says.
European rebar prices moving up slowly, plate weakens
The latest reference prices released by The Steel Index show that European rebar prices have risen since last week, but plate prices are slightly weaker. However, the US plate reference price is just higher. The southern European rebar reference price has increased to €360/tonne ($517/tonne) since last week, and the average delivery lead-time is just shorter at 3.7 weeks. The northern European rebar reference price ex-works also rose, by €9/t, and the average delivery lead-time is more than a week longer than last week at 4.2 weeks. The spreads between TSI's European rebar reference prices and the average LME Mediterranean weekly billet settlement price, which was $385/t last week, show a spread to TSI's southern European rebar price of $132/t, an increase of $19/t from last week. The spread to TSI's northern European rebar price is $82/t, up $10/t on the previous week. The northern European plate ex-mill reference price is slightly lower than last week at €464/t ($666/t), while the average delivery time is just shorter at 6.2 weeks. The southern European plate ex-mill reference price is also lower than last week, but the average delivery lead-time is unchanged at 5.5 weeks. The US plate FOB Midwest mill reference price is $4/short ton higher than last week at $581/short ton ($640/tonne), and the average delivery time is unchanged.
Japanese scrap export prices jump in Kanto auction
The auction for H2 grade scrap for export held by the Kanto Tetsugen group of scrap dealers on 11 August concluded with a winning bid price that was a huge ¥5,010/tone ($51.7/t) higher than the top bids in last month's tender. The highest bid price in Tuesday's auction was ¥31,970/t ($331/t) fas and the second highest was ¥31,910/t fas. Both winners were awarded 5,000 tonnes each. "The very high winning bid price surprised us: we wonder who would buy this expensive scrap," a Tokyo-based scrap dealer tells Steel Business Briefing. Just the day prior to the auction, Korean mini mill Hyundai Steel purchased Japanese scrap at ¥31,500/t ($326/t) fob, equivalent to ¥30,500/fas. Though the tonnage involved is unknown, the belief is Hyundai bought little because it wanted to wait and see the results of the Kanto auction. Unfortunately for Hyundai, the Kanto auction price was much higher and it will have to pay more for Japanese scrap in future, SBB hears. The Japanese mini mills are usually eager to collect scrap before Japan's .Obon' summer holidays in mid-August, and if they have already secured sufficient scrap stocks, they will just wait and see how the scrap market moves, the scrap dealer tells SBB. "But the generation of scrap is very low and the mini mills that do not have stocks in hand might have to lift their buying prices," he adds. By comparison, Tokyo Steel Manufacturing is currently offering ¥30,000/t for H2 delivered at its Utsunomiya works in the northern Kanto.
Eastern China's Shagang has tweaked its rebar prices upwards by RMB 50/tonne ($7/t) for mid-August delivery (11-20 August) and kept wire rod prices unchanged from early August levels. With the price change Shagang announced on 11 August, the new price for 18-25mm HRB335 has been lifted to RMB4,670/t ($683/t) while the price of its 6.5mm wire rod remains at RMB 4,650/t, both including 17% VAT. Just what strategy Shagang is pursuing is a mystery but certainly, it has not helped to stabilize the spot market in this region of China. In Hangzhou, prices of Shagang-sourced 18-25mm HRB335 rebar have slipped to about RMB 4,200-4,250/t, down by as much as RMB 400/t since 5 August. Meanwhile, beginning 10 August Shanghai market prices for 18-25mm HRB335 prices have further declined by about RMB 200/t to RMB 4,090-4,140/t. "No one is buying, even at a price of RMB 4,090/t," a Shanghai trader tells Steel Business Briefing, adding that he had heard some traders had lowered their prices even to RMB 4,050/t. Beijing traders are offering 16-25mm HRB335 rebar in a range of RMB 4,470-4,600/t, also down by about RMB 400/t compared with 6 August. "The market prices are confusing; many small traders have felt pressure of high inventories and want to speed up sales, but buyers would not purchase when the prices are rapidly falling," one says.
European rebar prices moving up slowly, plate weakens
The latest reference prices released by The Steel Index show that European rebar prices have risen since last week, but plate prices are slightly weaker. However, the US plate reference price is just higher. The southern European rebar reference price has increased to €360/tonne ($517/tonne) since last week, and the average delivery lead-time is just shorter at 3.7 weeks. The northern European rebar reference price ex-works also rose, by €9/t, and the average delivery lead-time is more than a week longer than last week at 4.2 weeks. The spreads between TSI's European rebar reference prices and the average LME Mediterranean weekly billet settlement price, which was $385/t last week, show a spread to TSI's southern European rebar price of $132/t, an increase of $19/t from last week. The spread to TSI's northern European rebar price is $82/t, up $10/t on the previous week. The northern European plate ex-mill reference price is slightly lower than last week at €464/t ($666/t), while the average delivery time is just shorter at 6.2 weeks. The southern European plate ex-mill reference price is also lower than last week, but the average delivery lead-time is unchanged at 5.5 weeks. The US plate FOB Midwest mill reference price is $4/short ton higher than last week at $581/short ton ($640/tonne), and the average delivery time is unchanged.
Japanese scrap export prices jump in Kanto auction
The auction for H2 grade scrap for export held by the Kanto Tetsugen group of scrap dealers on 11 August concluded with a winning bid price that was a huge ¥5,010/tone ($51.7/t) higher than the top bids in last month's tender. The highest bid price in Tuesday's auction was ¥31,970/t ($331/t) fas and the second highest was ¥31,910/t fas. Both winners were awarded 5,000 tonnes each. "The very high winning bid price surprised us: we wonder who would buy this expensive scrap," a Tokyo-based scrap dealer tells Steel Business Briefing. Just the day prior to the auction, Korean mini mill Hyundai Steel purchased Japanese scrap at ¥31,500/t ($326/t) fob, equivalent to ¥30,500/fas. Though the tonnage involved is unknown, the belief is Hyundai bought little because it wanted to wait and see the results of the Kanto auction. Unfortunately for Hyundai, the Kanto auction price was much higher and it will have to pay more for Japanese scrap in future, SBB hears. The Japanese mini mills are usually eager to collect scrap before Japan's .Obon' summer holidays in mid-August, and if they have already secured sufficient scrap stocks, they will just wait and see how the scrap market moves, the scrap dealer tells SBB. "But the generation of scrap is very low and the mini mills that do not have stocks in hand might have to lift their buying prices," he adds. By comparison, Tokyo Steel Manufacturing is currently offering ¥30,000/t for H2 delivered at its Utsunomiya works in the northern Kanto.
Malaysian Ringgit Exchange Rate