SHANGHAI, Jun. 14 (SMM) - Shasteel and Shaoguan I/S released their prices in mid-June, which was in line with market expectations. The price spread between Shaoguan I/S'second and third grade rebar prices narrowed further by RMB 80/mt, compared to the RMB 130/mt before June. Due to the promotion of third grade rebar in Jiangsu and Zhejiang, steel plants including Shayong and Zhongtian increased third grade rebar output in May, leading to fierce market competitions. That is attributable to the sharp declines in east China. The price spread between second and third grade rebar in Guangdong should narrow.
Prices in east China are the lowest, while prices in south China are high. Third grade rebar prices in Hebei I/S were RMB 3,410/mt (weighed); prices of third grade rebar at Shasteel were RMB 3,300/mt (unweighed, RMB 3,440/mt weighed) ; third grade rebar prices in Shaoguan I/S were RMB 3,630/mt (weighed), with price spread between south and north China reaching RMB 220/mt. As north China increases resources supply to south China, when combined with the promotion of third grade rebar, prices in Guangzhou should drop more sharply than any other regions.