SHANGHAI, Apr. 11 (SMM) - Shasteel raised prices for rebar and high speed rod wire prices for early April by RMB 30/mt on April 11th, with prices for second grade rebar of RMB 3,720/mt, prices for third grade rebar of RMB 3,820/mt, and prices for HPB300 high speed rod wire of RMB 3,780/mt. Other policies were maintained unchanged, with extra charges for acceptance of RMB 20/mt and no subsidy for last pricing. Discounts for rebar above third grade were raised by RMB 20/mt.
Shasteel unexpectedly adjusting prices is due mainly to improving fundamentals, rising rebar futures prices and losses. This will also boost market confidence. The steel plant raised discounts for third grade rebar to encourage traders to increase utilization of high intensity steel, and also give room for policy implementation.
Rebar futures prices surged initially but then fell. Second grade rebar prices in Hangzhou rose by RMB 10/mt, to RMB 3,700/mt, while prices in Shanghai and other east China regions remained steady, with traders operating cautiously. Traders increased purchases but sales were sluggish. Prices in Beijing fell slightly and transactions thus improved, with prices in Guangzhou and Nanning weakening. Rebar futures prices will fluctuate due to a lack of positive news, while spot prices should remain fluctuating due to a lack of market confidence.