SHANGHAI, Apr. 23 (SMM) – Shasteel lowered rebar prices by RMB 80/mt, maintaining high speed wire prices steady, with prices for second grade rebar RMB 3,640/mt, and prices for third grade rebar RMB 3,740/mt, prices for HPB 300 high speed wire of RMB 3,780/mt, and with charges of RMB 20/month for acceptance payment. 30/mt rebate is allowed for distributors ordered goods in mid April.

Price decreases by Shasteel are beyond market expectations. That also shows steel plants are pessimistic toward the market. Steelease notices hot rolling producers have been depleting stocks in April, while inventories at rebar and high speed wire producers were also high, so steel plants implement preferential policies to encourage customers to order goods to deplete stocks.

Spot markets were mixed. Shanghai and Hangzhou remained steady, and prices in Beijing rose slightly, while prices in Guangdong continued to fall. Transactions were muted with the exception of Beijing. The Shanghai Composite Index closed at 242.17 on April 22, down 0.11%, and SHFE rebar prices opened high but moved lower, closing at RMB 3,647/mt, down 0.60%. Prices will likely rebound as downstream buyers replenish stocks before the Labor Day holiday, but the dynamic will not persist beyond the immediate term.