Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of October 10 it has raised its scrap purchase prices by RMB 80/mt (12/mt), signaling its bullish view of the future prospects for the market. During the holidays, stocks of scrap declined, while the overall domestic supply volume was not very high. Given the rebound in steel prices recently, local scrap prices have also moved up.
In September, a downward trend prevailed in the scrap market in China. Shagang Group decreased its scrap purchase prices by RMB 50/mt ($7.4/mt) on September 25, while the producer reduced its scrap purchase prices by a total of RMB 110/mt ($16/mt) in September.