It is reported that leading steel producers in China have successively launched price policies for next January recently and Angang, Shougang and Shagang, etc have raised up HRC prices for January production reflecting their improved confidence for future market.
As the biggest private steelmaker in China, Jiangsu Shagang Group has held an order placing meeting last week announcing offering subsidy of CNY 130 per tonnes for those customers finishing January order sizes for their September to December orders this year.
Meanwhile the steel mill has readjusted its cash deposit volume, reducing the sum by CNY 100 per tonnes to CNY 300 per tonnes. Order prices for the mill"s HRC maintain over CNY 3,500 per tonnes for next January. Analysts believe the move aims to encourage suppliers to place orders since the mill has small quantities of materials on the market at the moment.
In the mean time, Shougang and Benxi Steel have also lifted up their HRC order prices for the same period price from Shougang goes at CNY 3,550 per tonnes and Benxi Steel at CNY 3,603.6 per tonnes all up from the earlier period.
Upturn becomes the main trend in steel mills" new price policies. Angang has lifted its base price for common/low carbon HRC by CNY 350 per tonnes for next January and cut CNY 50 per tonnes for transport subsidy and raised up CR prices by CNY 230 per tonnes for those thickness up 1.0 millimeters, medium plate price up CMY 150 per tonnes with price for thick plate unchanged; HDG up CNY 130 per tonnes with PPGI remaining unchanged and the mill has removed the CNY 100 per tonnes subsidy for common carbon wire rod transport.
Benxi Steel raised up 2.7 millimeters HRC price by CNY 390 per tonnes, 3.0 millimeters by CNY 400 per tonnes, 5.5 millimeters by CNY 460 per tonnes. The mill hasn"t offered subsidy for new orders. Maanshan Steel has revised up rebar prices by CNY 150 per tonnes and CNY 200 per tonnes respectively for the mid and late of this month in Guangdong. And it"s learned that Baosteel will also launch new price policy in days to come.
Steel mills have also pulled up futures prices and analysts believe their new price policies are the root cause behind the current market price upturn. However, downstream demand has almost been stagnant with thin trade and most traders have yet to start winter storage. With dense fence sitting attitude, there seem very few motives for the price rebound in future.