Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of April 25 it has raised its scrap purchase prices by RMB 50/mt (7.7/mt), signaling its bullish view of the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has risen to RMB 3,450/mt ($531/mt) delivered, including 13 percent VAT. Higher demand and mills’ improved profitability have pushed up local scrap prices in China.
On April 10, Shagang Group had raised its scrap purchase prices by RMB 80-100/mt.
As SteelOrbis reported earlier, import scrap prices in China have been moving on an upward trend as well. Last week, a deal for ex-South Korea HS was done at $505/mt CFR to the northern part of the country, while negotiations with Japanese sellers were held at $500-505/mt CFR. Bids from eastern China are still lower - at $490-495/mt CFR. Late last week, the reference price from SteelOrbis was at $495-505/mt CFR, up by $5/mt from early in the same week.