SHANGHAI, Mar. 22 (SMM) - Shasteel lowered rebar prices for March by RMB 80/mt, high speed wire rod prices by RMB 100/mt, with prices for second grade rebar of RMB 3,720/mt, and prices for third grade rebar of RMB 3,820/mt, and prices for HPB300 high speed wire rod of RMB 3,800/mt. Other policies remained unchanged, with interest rates subsidy of RMB 20/mt. Shasteel will subsidize RMB 80/mt on rebar and RMB 100/mt on wire rod in March for distributors which completed planned sales in February and March.
Shasteel lowering prices is in line with market expectations. Most distributors will have profits after the adjustments. But the steel plants did not give any response to discounts for February sales volume. Most market players in Hangzhou placed orders. But Steelease sources report a few large customers rejected to order goods or pay cash, which are powerful in capital. They reported if Shasteel does not try to resolve the problem, their cooperation will be affected.
Rebar futures prices soared yesterday. Beijing market led increases, and transactions improved, with integrated increases RMB 30-60/mt. Large cargo holders in Wuhan could sell 2,000-3,000 mt of goods, and that is partially because transportation returned to normal. Prices for some resources in Guangdong were lowered, and transactions became muted. East China market was muted. Downstream buyers will build stocks once there is positive news, but as market fundamentals did not improve, prices should continue to fluctuate.