Shagang cuts early January long steel prices

China's largest private-sector steelmaker Jiangsu Shagang has cut early January prices for long steel products by 100-140 yuan/t ($14.50-20.50/t) as spot prices fall further because of weak demand.

The price cut follows an Yn80/t decrease by Shagang in late December.

Construction steel prices have been weak, with looser winter output restrictions keeping more supply in the market and China's policymakers holding off on any significant stimulus measures to reverse the economic slowdown. This has prevented traders from taking positions ahead of spring demand, which typically lifts warehouse inventories to their annual peak.

Shanghai rebar spot prices fell by Yn70/t to Yn3,780/t ex-warehouse from 21-31 December, the period covered by Shagang's previous price levels. The mill is also providing subsidies to traders, with a discount of Yn120/t for rebar and Yn130/t for small-sized coiled rebar and wire rod.

Shagang's base rebar specification HRB400 with 16-25mm diameter is now offered at Yn3,880/t. Its coiled rebar with HRB400 8-10mm diameter is offered at Yn4,050/t, with 6mm diameter at Yn4,350/t.

The wire rod base specification HPB300 with 6.5mm diameter is offered at Yn3,980/t.

All prices include value-added tax.

Shagang listed prices effective 1 January:

• HRB400 6mm rebar at Yn4,350/t
• HRB400 8-10mm rebar at Yn4,050/t
• HRB400 16-25mm rebar at Yn3,880/t
• HRB400 10mm rebar at Yn4,040/t
• HRB400 12mm rebar at Yn3,980/t
• HRB400 14mm rebar at Yn3,910/t
• HRB400 28-32mm rebar at Yn3,940/t
• HRB400 36mm and 40mm rebar at Yn4,130/t
• HRB500 rebar sizes are Yn450/t higher than HRB400
• HRB500E rebar sizes are Yn480/t higher than HRB400
• HPB300 6.5mm wire rod at Yn3,980/t