SHANGHAI, Mar. 13 (SMM) - Shasteel lowered prices in March by RMB 250/mt for rebar, RMB 100/mt for coiled reinforced bar on March 11th, with prices for second grade rebar RMB 3,800/mt, and for third grade rebar of RMB 3,900/mt, and for HPB300 of RMB 3,900/mt, and for coiled reinforced bar of RMB 3,900/mt, with other policies unchanged, and subsidies for interest rates of RMB 20/mt.
Shasteel adjusting prices is out of market expectations. Distributors in Hangzhou required Shasteel to subsidy them for February prices, and adjust March prices close to market prices, and they refused to pay for goods and stopped selling. Shasteel then lowered prices by RMB 100/mt and gave an subsidy of RMB 100/mt. But distributors in Hangzhou did not accept and held a meeting to discuss further measures since they believed the subsidy by Shasteel for February price was too low. Second grade steel price of Shasteel was RMB 3,750/mt on March 11th. Distributors were unwilling to place orders in case of losses, while Shasteel believed the sharp declines in prices were a result of negative macroeconomic news, rather than market fundamentals.
There had been traders which were opposed steel plant policies, but no result was reached. Hangzhou could insist its stand since the market consume 60-70% of rebar from Shasteel.