Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of today, February 26 it has raised its scrap purchase prices by RMB 100/mt (15.5/mt), signaling its bullish view of the future prospects for the market as demand for construction steel is expected to be good in the coming period. Accordingly, Shagang’s heavy scrap purchase price has reached RMB 3,350/mt ($519/mt).
Shagang Group had cut its scrap purchase prices by RMB 30/mt (4.6/mt) on January 29.
Higher prices for imported scrap have also prevailed in the Chinese market. Japanese suppliers have been asking for $500/mt CFR minimum for HS scrap in China after they managed to sell some small volumes at $480/mt CFR earlier this week. On Friday, market sources have confirmed that the tradable level has increased by another $5/mt to $485/mt CFR China for ex-Japan HS scrap.