On December 26, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a rise in its scrap purchase price. Accordingly, the company has raised its scrap purchase price by RMB 50/mt ($7/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 3,070/mt ($432/mt), RMB 3,040/m ($428/mt) and RMB 3,010/mt ($424/mt) delivered, including 13 percent VAT, respectively.
The supply shortage of scrap in the market provided certain support to its prices.
