SHANGHAI, Mar. 12 (SMM) –Shagang Group, China's largest privately-owned steel producer, introduced ex-work price policy for mid-March, slashing rebar prices by RMB 250/mt and wire products and coiled reinforced bar by RMB 100/mt respectively. Jiangsu Yonggang Group and Zenith Steel Group followed suit to launch ex-work price policy for mid-March the same day. Yonggang Group lowered rebar prices by RMB 180/mt, wire products by RMB 130/mt, and coiled reinforced bar by RMB 100/mt. Zenith Steel Group cut prices for rebar, wire products and coiled reinforced bar by RMB 200/mt, RMB 30/mt and RMB 50/mt, respectively. Shagang Group raised rebar prices significantly by RMB 200/mt in early February and held prices flat in middle and late February as well as early March.

Large steel producers' move in slashing prices indicated that steel markets remain sluggish for the time being. According to Mysteel.com, social stocks of five major varieties of steel in China's major markets totaled 22.316 million mt as of March 8, up for 12 consecutive weeks. At present, China's rebar stocks have reached 10.7979 million mt, a historical high.

However, many market insiders hold the view that as Chinese buying picks up gradually, market transactions in some markets have increased. With steel stocks being consumed gradually, steel prices tend to consolidate near current lows. Nonetheless, high stocks in some cities still gave great pressure to steel prices.

According to sources, Baosteel has also introduced ex-work price policy of plate products for April, raising hot-rolled steel by RMB 150/mt, hot-galvanized zinc by RMB 200/mt, and electro-galvanized zinc by RMB 120/mt or RMB 200/mt according to specifications. Baosteel increased prices for major plate products for five straight months, with the gain for some kinds of steel products reaching RMB 500/mt. Against the backdrop of high steel stocks, historical high level of daily crude steel output and soft downstream demand, Baosteel's decision in raising prices showed its optimism over future demand, which, however, is unlikely to lift steel markets.

Silicomanganese alloy market remains sluggish, and combined with supply surplus and weak downstream demand, silicomanganese alloy prices will probably continue fluctuating at lows for the foreseeable future.

Mainstream quotes for silicomanganese alloy today: