Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of May 1 it has raised its scrap purchase prices by RMB 80/mt (12.3/mt), signaling its bullish view of the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has risen to RMB 3,530/mt ($544/mt), delivered, including 13 percent VAT.
Shagang Group had increased its scrap purchase prices by RMB 50/mt (7.7$/mt) on April 25.
Higher local scrap prices will support imports prices, and, though bids from eastern China are still not above $500/mt CFR, a deal for ex-Japan scrap was done at $515-520/mt CFR to the north of China just before the Labor Day holiday.
Following increases in steel prices from today, May 6, the asking price from Japanese suppliers for HS scrap has already reached $530/mt CFR. The average tradable value has been assessed by market sources at $510/mt CFR for now, up by $12/mt on average compared to the middle of last week.