News Room - Steel Industry

Posted on 03 Aug 2009

Shanghai steel rebar futures surge on Shagang hike

Steel reinforcing bar futures traded on the Shanghai Futures Exchange, surged 4 percent on Monday, after a major domestic producer increased its spot offer price by around 15 percent on Sunday.

 

The October contract for the steel product, used in construction, was quoted at 4,813 yuan a tonne by 0219 GMT, up 4 percent from its closing price of 4,627 yuan on Friday.

 

The contact had risen as high as 4,857 yuan, up 5 percent from the closing price and up the 7 percent limit from the settlement price, in early trade.

 

The contract has gained nearly 25 percent in the past month, boosted by a surge in prices of structural steel products in China as government economic stimulus measures focusing on infrastructure bolstered demand.

 

Jiangsu Shagang Group, China's largest private-sector steelmaker and a leading reinforcing bar producer, hiked its sales prices by around 15 percent on Sunday, industry consultancy Umetal said on Monday.

 

The surge in reinforcing bar prices also boosted other steel product prices. Hot-rolled steel coil prices in Shanghai rose by 150-200 yuan a tonne on Monday, Umetal said.

 

China's largest steel mill, Baosteel, is expected to raise September prices for its major hot-rolled and cold-rolled steel products by about 5 to 6 percent versus August tags, trade sources close to the company have said.