Import scrap prices in China have continued to go up late this week, which has already been confirmed in deals to the northern part of the country. Stronger demand after the holiday, suppliers’ bullish outlook and strong steel prices in China have led to the recent hike.
The latest transaction for ex-Japan HS scrap has been done at $527/mt CFR north China, sources have said, which is $7/mt higher than the previous contract to this destination. Also, another contract has been heard at $529-530/mt CFR. Most offers have increased further to $535/mt CFR north China on Friday, May 7. “Suppliers are very cautious in sales as prices will gain further next week,” a trader said.
The bid prices in eastern China have also improved, to $505/mt CFR or slightly above, but have still been below the level in the north.
Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of May 7 it has raised its scrap purchase prices by RMB 100/mt ($15.5/mt), signaling its need to increase supply of the raw material and reflecting the rising trend in both finished steel and raw material prices in China. Accordingly, Shagang’s heavy scrap purchase price has risen to RMB 3,630/mt ($561/mt).
Shagang Group had increased its scrap purchase prices by RMB 80/mt (12.3/mt) on May 1.
$1 = RMB 6.4678