On May 30, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a rise in its scrap purchase price after decline seen last time on May 25. This time, the company has raised its scrap purchase price by RMB 30/mt ($4.2/mt), signaling improved sentiments as regards the future prospects for the scrap market.
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have increased to RMB 2,840/mt ($401/mt), RMB 2,810/m ($397/mt) and RMB 2,780/mt ($393/mt) delivered, including 13 percent VAT, respectively.
Rebar futures prices in China have indicated a rebounding trend since May 26 amid increasing iron ore prices, which has provided support for the scrap market.
$1 = RMB 7.0818