On April 11, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a rise in its scrap purchase price, which will be effective on April 12. Accordingly, the company has raised its scrap purchase price by RMB 50/mt ($7/mt), which will be the first rise since the beginning of this year, reflecting the improved sentiments as regards the future prospects for the scrap market. Since January 11 this year, Shagang’s scrap purchase prices have accumulatively declined by RMB 360/mt ($51/mt).
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have decreased to RMB 2,760/mt ($389/mt), RMB 2,730/m ($384.5/mt) and RMB 2,700/mt ($380/mt) delivered, including 13 percent VAT, respectively.
Following the Tomb Sweeping Day, scrap resource arriving at steelmakers’ side has been at relatively low level, bolstering scrap prices. At the same time, market sentiments improved, also exerting a positive impact on scrap prices.