SteelOrbis has been informed that Shagang Steel, the largest ferrous scrap consumer in China, has announced a sharp increase in scrap purchase prices.
In mid-January, SteelOrbis reported scrap purchase quotations declining to RMB 2,400/mt ($373/mt) delivered. Prices are now reportedly up at RMB 2,550/mt ($404/mt) delivered. While an increase of RMB 150 would normally translate to an increase of $24/mt, due to currency fluctuations, the scrap purchase price has increased $31/mt from mid-January prices.
USD = RMB 6.44 (Jan 16)
USD = RMB 6.31 (Mar 6)