Shagang stuns market with huge bar/rod price hike
Eastern Chinese steelmaker Shagang astonished the markets with a massive price increase of RMB 600/tone ($88/t) for rebar and RMB 500/t for wire rod for ex-works delivery during 1-10 August. 18-25mm HRB335 rebar and 6.5mm wire rod prices have been adjusted to RMB 4,620/t ($676/t) and RMB 4,650/t respectively, with 17% VAT. Steel Business Briefing notes that Shagang's rebar price has surpassed Hebei Iron & Steel's RMB 4,450/t and Shougang's RMB 4,475/t. Shagang's large price hike stimulated increases of about RMB 300/t in eastern China's main steel markets of Shanghai and Hangzhou on 3 August. Hangzhou prices for Shagang-produced 18-25mm HRB335 rebar have soared to about RMB 4,550/t. Meanwhile, Shanghai traders are offering 18-22mm HRB335 and 16-22mm HRB400 rebar at about RMB 4,440-4,450/t and RMB 4,500/t respectively. "The steel market price is like a balloon out of control and it's likely to fly higher if there's no downwards pressure on it. Growing market inventory could provide the pressure to drag down the balloon," a trader in eastern China says. Rebar futures prices on the Shanghai Futures Exchange have also continued to rise, with October contract prices closing at RMB 4,857/t on 3 August from 31 July's RMB 4,672/t, up 7%.
Korea's Hyundai lifts prices for rebar and beams
Despite being the season of low demand for long products in Korea, Hyundai Steel has raised its domestic sales prices by KRW 40,000-50,000/tonne ($33-41/t) from 1 August, citing the need to offset higher scrap prices. The increase lifted the price for 10mm diameter bar for direct supply to contractors by KRW 40,000/t to KRW 731,000/t ($594/t), from KRW 691,000/t ($562/t) at the beginning of July. Hyundai's 600x300mm H-beam sales price increased by KRW 50,000/t to KRW 850,000/t ($691/t) from KRW 800,000/t. However, the Korean mill's list prices for rebar and H-beam remain unchanged since 1 June at KRW 761,000/t ($619/t) and KRW 900,000/t respectively. "We decided to lift our prices to help our profitability. However, we will monitor the domestic market to see whether these higher prices will be accepted and adjust them accordingly later," a Hyundai source tells Steel Business Briefing. Korea's domestic scrap prices have been rising gradually from early July, with electric arc furnace (EAF) makers near Busan on the southeast coast now paying KRW 380-390,000/t ($309-317/t) for Shindachi grade from KRW 310-320,000/t a month ago. Decreasing volumes of domestic scrap and higher scrap import prices are the major reasons for the increases. Hyundai booked Japanese H2 grade scrap in its 31 July tender at ¥28,800/t ($303/t) fob from ¥28,000/t fob a week ago, up by ¥800/t ($8.4/t) as SBB reported. Meanwhile, Dongkuk Steel Mill also lifted its domestic prices for long products from 3 August. The new price for 10mm diameter bar is the same as Hyundai's at KRW 731,000/t, up by KRW 40,000/t.
Tokyo Steel lifts scrap purchase prices, again
Tokyo Steel Manufacturing has raised its scrap purchase prices by ¥500-1,000/tonne ($5.27-10.5/t) for all grades at all its works effective 4 August arrivals. The company has hiked its scrap purchase prices four times over a period of ten days and the total price increase is ¥1,000-2,000/t. Tokyo Steel's new H2 price at Okayama works is ¥30,500/t ($321/t) for seaborne delivery and ¥29,500/t for truck delivery. Its price at Kyushu, Takamatsu and Utsunomiya is ¥28,500/t, ¥29,000/t and ¥29,500/t respectively. "The current export price is becoming lower than Japanese domestic purchase prices. However, dealers are collecting
scrap for export because these would be for previously contracted export cargoes. "This means that the mini mills here have to lift their purchase prices to secure scrap," a scrap trader tells Steel Business Briefing. He believes that very low scrap generation, currently 30-40% lower year-on-year, has resulted in a very tight supply situation. Hyundai Steel's purchase price of Japanese H2 grade scrap on 31 July was ¥28,800/t ($303/t) fob, as SBB reported. "Hyundai was aiming to buy about 100,000 t but only could book about 20,000 t, because its bidding price was too low for dealers to make profit," another trader says. He believes that overseas mills will have to raise their purchase price after this week in order to secure sufficient
Scrap offer prices continue rising despite Turks' absence
Turkish steel mills remained away from the global scrap market last week because of higher prices, but Far East mills' buying is still strengthening the global scrap prices and Turkish mills are expected to resume buying soon, market sources tell Steel Business Briefing. Only one deep sea cargo was booked from EU after the previous week's eleven cargoes, and it was sold for $294/tonne cfr for HMS 1&2 70:30.
It is reported that the US and EU suppliers' offer prices continued climbing on Far East mills' strong demand. Current offer prices for HMS 1&2 70:30 are at $298/tone cfr, $8-13/t higher than the last week's offers. HMS 1&2 80:20 prices are at $310/tonne cfr, up by $10-15/tonne, and shredded scrap is at $315/tonne, also up by $10-15/tonne. However CIS prices for A3 grade scrap seem stable at $287/t cfr Istanbul and $292/t cfr Izmir levels. But it is expected to move above $300/tonne cfr very soon, SBB learns.
Eastern Chinese steelmaker Shagang astonished the markets with a massive price increase of RMB 600/tone ($88/t) for rebar and RMB 500/t for wire rod for ex-works delivery during 1-10 August. 18-25mm HRB335 rebar and 6.5mm wire rod prices have been adjusted to RMB 4,620/t ($676/t) and RMB 4,650/t respectively, with 17% VAT. Steel Business Briefing notes that Shagang's rebar price has surpassed Hebei Iron & Steel's RMB 4,450/t and Shougang's RMB 4,475/t. Shagang's large price hike stimulated increases of about RMB 300/t in eastern China's main steel markets of Shanghai and Hangzhou on 3 August. Hangzhou prices for Shagang-produced 18-25mm HRB335 rebar have soared to about RMB 4,550/t. Meanwhile, Shanghai traders are offering 18-22mm HRB335 and 16-22mm HRB400 rebar at about RMB 4,440-4,450/t and RMB 4,500/t respectively. "The steel market price is like a balloon out of control and it's likely to fly higher if there's no downwards pressure on it. Growing market inventory could provide the pressure to drag down the balloon," a trader in eastern China says. Rebar futures prices on the Shanghai Futures Exchange have also continued to rise, with October contract prices closing at RMB 4,857/t on 3 August from 31 July's RMB 4,672/t, up 7%.
Korea's Hyundai lifts prices for rebar and beams
Despite being the season of low demand for long products in Korea, Hyundai Steel has raised its domestic sales prices by KRW 40,000-50,000/tonne ($33-41/t) from 1 August, citing the need to offset higher scrap prices. The increase lifted the price for 10mm diameter bar for direct supply to contractors by KRW 40,000/t to KRW 731,000/t ($594/t), from KRW 691,000/t ($562/t) at the beginning of July. Hyundai's 600x300mm H-beam sales price increased by KRW 50,000/t to KRW 850,000/t ($691/t) from KRW 800,000/t. However, the Korean mill's list prices for rebar and H-beam remain unchanged since 1 June at KRW 761,000/t ($619/t) and KRW 900,000/t respectively. "We decided to lift our prices to help our profitability. However, we will monitor the domestic market to see whether these higher prices will be accepted and adjust them accordingly later," a Hyundai source tells Steel Business Briefing. Korea's domestic scrap prices have been rising gradually from early July, with electric arc furnace (EAF) makers near Busan on the southeast coast now paying KRW 380-390,000/t ($309-317/t) for Shindachi grade from KRW 310-320,000/t a month ago. Decreasing volumes of domestic scrap and higher scrap import prices are the major reasons for the increases. Hyundai booked Japanese H2 grade scrap in its 31 July tender at ¥28,800/t ($303/t) fob from ¥28,000/t fob a week ago, up by ¥800/t ($8.4/t) as SBB reported. Meanwhile, Dongkuk Steel Mill also lifted its domestic prices for long products from 3 August. The new price for 10mm diameter bar is the same as Hyundai's at KRW 731,000/t, up by KRW 40,000/t.
Tokyo Steel lifts scrap purchase prices, again
Tokyo Steel Manufacturing has raised its scrap purchase prices by ¥500-1,000/tonne ($5.27-10.5/t) for all grades at all its works effective 4 August arrivals. The company has hiked its scrap purchase prices four times over a period of ten days and the total price increase is ¥1,000-2,000/t. Tokyo Steel's new H2 price at Okayama works is ¥30,500/t ($321/t) for seaborne delivery and ¥29,500/t for truck delivery. Its price at Kyushu, Takamatsu and Utsunomiya is ¥28,500/t, ¥29,000/t and ¥29,500/t respectively. "The current export price is becoming lower than Japanese domestic purchase prices. However, dealers are collecting
scrap for export because these would be for previously contracted export cargoes. "This means that the mini mills here have to lift their purchase prices to secure scrap," a scrap trader tells Steel Business Briefing. He believes that very low scrap generation, currently 30-40% lower year-on-year, has resulted in a very tight supply situation. Hyundai Steel's purchase price of Japanese H2 grade scrap on 31 July was ¥28,800/t ($303/t) fob, as SBB reported. "Hyundai was aiming to buy about 100,000 t but only could book about 20,000 t, because its bidding price was too low for dealers to make profit," another trader says. He believes that overseas mills will have to raise their purchase price after this week in order to secure sufficient
Scrap offer prices continue rising despite Turks' absence
Turkish steel mills remained away from the global scrap market last week because of higher prices, but Far East mills' buying is still strengthening the global scrap prices and Turkish mills are expected to resume buying soon, market sources tell Steel Business Briefing. Only one deep sea cargo was booked from EU after the previous week's eleven cargoes, and it was sold for $294/tonne cfr for HMS 1&2 70:30.
It is reported that the US and EU suppliers' offer prices continued climbing on Far East mills' strong demand. Current offer prices for HMS 1&2 70:30 are at $298/tone cfr, $8-13/t higher than the last week's offers. HMS 1&2 80:20 prices are at $310/tonne cfr, up by $10-15/tonne, and shredded scrap is at $315/tonne, also up by $10-15/tonne. However CIS prices for A3 grade scrap seem stable at $287/t cfr Istanbul and $292/t cfr Izmir levels. But it is expected to move above $300/tonne cfr very soon, SBB learns.
Malaysian Ringgit Exchange Rate