Chinese heavy scrap sees strong performance in south

SteelOrbis Shanghai With the rocketing of the finished steel market, the leading mills have begun to increase their heavy scrap purchasing prices after a long and stable flat trend period. On January 10, heavy scrap prices in Zhangjiagang, southern China, have risen RMB 70/mt ($9) week on week to RMB 2,080/mt ($267), while those in Alashankou, northern China, were constant at RMB 1,810/mt ($232). According to market price trend of recent days, semis and pig iron prices are on an upward trend, while scrap prices continue to remain stable. Driven by the sharp rise in finished steel prices, the mills began to increase their prices for scrap purchases. In Zhangjiagang, the leading mill Shagang has raised its purchase price of HMS 3 by RMB 60/mt to RMB 2,070/mt ($265); while the prices of Wuxi Xuefeng and Suzhou Steel are at RMB 2,090-2,140/mt ($268-274). In Jiangxi, Xinyu Steel's purchase price is at RMB 1,890/mt ($242), that of Nanchang Steel is at RMB 2,060/mt ($264). In Shandong, the purchase prices of Laiwu Steel and Rizhao Steel are at RMB 2,020-2,060/mt ($259-264). The scrap market is not likely to see any big fluctuations next week and will probably increase steadily.