On July 26, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 50/mt ($7/mt) rise in its scrap purchase price, following a RMB 50/mt rise on July 12, signaling bullish 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 2,550/mt ($357/mt), RMB 2,520/m ($353/mt) and RMB 2,490/mt ($349/mt) delivered, including 13 percent VAT, respectively.
The Chinese government has urged the curbing of excessive competition in the steel sector, firmly bolstering market sentiments.