SHANGHAI, Aug 20 (SMM) – Jiangsu Shagang Group is likely to raise its rebar prices by some 250 yuan/mt in late August due to continuous environmental restrictions on supply and steady downstream demand, SMM believes.
The expected rise will bring the company’s rebar price to 4,600 yuan/mt ex-works, and 4,650 yuan/mt for cargoes at warehouses.
As of Monday August 20, rebar offers were up to 4,580-4,600 yuan/mt in the Hangzhou market. Traders earned 180-200 yuan/mt given costs of 4,400 yuan/mt for cargoes delivered from warehouses about 10 days earlier.
Environmental restrictions linger across steel mills in Changzhou and Xuzhou of Jiangsu province. Overall supply in east China stays at a low level.
Downstream demand was steady across most regions in the east. This was despite heavy rains affecting operations at some construction sites in north Jiangsu and Anhui provinces.
Lower in-plant inventories are seen across steel mills in east China, and this also adds to expectations of a price rise.
Separately, rebar margins at steel mills averaged at 1,073 yuan/mt in August, SMM calculated based on an iron ore price of $65.69/mt.
