Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of April 10 it has raised its scrap purchase prices by RMB 80-100/mt ($12.2-15.3/mt), signaling its bullish view of the future prospects for the market due to the expectations of booming construction activities in the coming period. Accordingly, Shagang’s heavy scrap purchase price has risen to RMB 3,530-3,550/mt ($538-541/mt) delivered, including 13 percent VAT.
Shagang Group had raised its scrap purchase prices by RMB 100/mt (15/mt) on March 2.
This positive development in the local scrap market is expected to push up prices in the import market. Last week, the workable import scrap price level increased to $470-480/mt CFR, according to SteelOrbis’ information, and for now there are already some bids at above $480-485/mt CFR from northern China. In the eastern part of the country customers can buy at $475-480/mt CFR. Most offers are at $500-505/mt CFR for import HS.
$1 = RMB 6.5578