Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 6 it has raised its scrap purchase price by RMB 100/mt ($15/mt), reflecting bullish sentiments for the scrap market amid the rising trends in ferrous metal futures prices and the expected rises in steel prices due to decreasing inventories.
Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has risen to RMB 2,870-2,930/mt ($424-433/mt) delivered, including 13 percent VAT.
Previously on August 1, Shagang Group had increased its scrap purchase price by RMB 100/mt ($15/mt).
From July 4 to July 31, Shagang Group had cut its scrap purchase price by RMB 730/mt ($108/mt) before the increase on August 1.
The latest move by Shagang signals that the producer is eager to boost scrap flow amid the rebounding trend in steel prices and the expectations of better demand from late August.
$1 = RMB 6.7695