Chinese longs offers plunge in mid-August

2019-08-15 13:56:59

Eastern China's major long steelmakers Shagang, Zenith and Yonggang have followed the downward trend in the market and reduced their long products offers for the second ten days of August, Kallanish notes.

The three steel mills adjusted prices in unison this time, cutting CNY 200/tonne ($28/t) from rebar offers and CNY 150/t from high-speed wire rod and rebar in coil offers. Meanwhile, they gave a subsidy of CNY 130-280/t to agents who completed their sales target in early-August, in order to make up the agents' losses.

High inventory data is putting increasing pressure on the market, while the disruption from Typhoon Lekima continues to hit demand in the spot market. As a result, major steel mills have also lowered their expectations.

The steel mills' planned market shipments for the period have not changed from early-August, according to their public announcements.

Chinese construction steel ex-works prices (including VAT), 11-21 August 2019

	Rebar HRB 400 16-25mm (CNY/tonne)	High-speed wire rod 6.5mm (CNY/t)	Rebar in coil 8-10mm (CNY/t)
Shagang offer	3,970	4,150	4,170
Shagang change	-200	-150	-150
Yonggang offer	3,970	4,230	4,230
Yonggang change	-200	-150	-150
Zenith offer	3,970	4,230	4,230
Zenith change	-200	-150	-150

Source: Company information