Chinese steel producer Shagang did not change the prices of its long steel products during two consecutive ten-day sales cycles. The prices of HRB400 16-22mm construction steel, HPB300 6-10mm wire rods, and HRB400 8-10mm coiled bars remained at levels of 4,450 yuan/ton, 4,560 yuan/ton, and 4,700 yuan/ton, respectively (including 13% VAT).
However, spot construction steel prices in the Shanghai market decreased by 60 yuan/ton to 4,260 yuan/ton (including VAT) as of March 31. This was 190 yuan/ton lower than Shagang's corresponding factory ex-works price.
China's steel market remained subdued as some market participants were concerned about steel demand conditions in April. At the end of March, spot sales of construction steel, wire rods, and coiled bars averaged 165,807 tons/day, down by 0.2% from the previous ten days.
On April 3, futures prices for construction steel in the Shanghai Futures Exchange closed at 4,019 yuan/ton, down by 3.1% or 130 yuan/ton, due to China's Caixin Manufacturing Purchasing Managers' Index lagging behind the market in March.
Major producers in Hebei and Shandong also decreased coke supply prices by 50-100 yuan/ton, reducing support for steel production raw material prices for construction steel.
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