Anshan cuts January steel prices: Update

Updates with Hesteel price cuts

China's state-owned steel producer Anshan Iron and Steel has announced steel price cuts of $22-58/t equivalent for January deliveries.

Anshan set a January base price for hot-rolled coil (HRC) that is lower by 150 yuan/t ($22/t) from December. HRC grade Q235B sized 5.75mm x 1500mm is offered at Yn4,050/t ex-works with 16pc value-added tax (VAT) excluded.

The large northeast China steel mill also cut ex-works prices for rebar by Yn400/t, with base specification HRB400E with 20mm diameter offered at Yn4,250/t with 16pc VAT excluded.

Anshan joins other mills in cutting January prices. The cut show a lack of confidence in the market with weak steel demand possibly slowing further. Mills' ex-works prices have stayed well above spot market prices, but mills will compensate trading firms next month in the price gap widens too much.

Shanghai ex-warehouse prices for rebar rose by Yn20/t to Yn3,800/t and for HRC rose by Yn40/t to Yn3,760/t today.

China's second-largest steel producer Hesteel late today cut its mid-December prices for long steel products.

Hesteel's base rebar specification HRB400E with 18-22mm diameter is offered at Yn3,720/t, down by Yn280/t. Its coiled rebar prices with HRB400E with 8-10mm diameter is offered at Yn3,900/t, or Yn180/t lower.

Its base specification high-carbon wire rod HPB300 with 8-10mm diameter is offered at 4,620/t, down by Yn190/t. All prices include VAT.

Baosteel earlier this month reduced its HRC ex-works prices for January delivery by Yn300/t and Wuhan Steel lowered ex-works prices of HRC by Yn150/t for sizing at or below 2mm and by Yn300/t for sizings above 2mm. Although Baosteel and Wuhan have merged into the conglomerate Baowu they still offer separate price quotes.