Shagang, China's biggest long products mill, has cut its rebar price for early May on softer spot prices.
The steelmaker will charge 4,340 yuan ($688) per tonne for its Grade III rebar of 16-25mm thickness, down 60 yuan from its previous price. It applies to deliveries in the first 10 days of May and includes 17% VAT.
“It's the first time that Shagang has cut its rebar prices since March,“ a trader in Shanghai told Metal Bulletin.
Spot steel prices in China have been on the decline over the past two weeks, forcing mills to contemplate price cuts.
Rebar in Shanghai is trading at 4,040-4,230 yuan per tonne, 10 yuan lower week-on-week or down 20-70 yuan in a fortnight.
Shagang is maintaining its prices for wire rod, hot rolled coil and plate for early May.
Despite Shagang’s price cut, traders remain cautious with bookings as the steelmaker’s new rebar prices are still higher than those on the spot market.