On June 14, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced another rise in its scrap purchase price. This time, the company has increased its scrap purchase price by RMB 50/mt ($7/mt), as decreasing inventory levels have exerted a positive impact on the scrap market.
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have increased to RMB 2,990/mt ($418/mt), RMB 2,960/m ($413/mt) and RMB 2,930/mt ($409/mt) delivered, including 13 percent VAT, respectively.
Rebar futures prices in China have moved up since early June amid improved sentiments and as the People’s Bank of China cut the repo rate by 10 basis points to 1.9 percent on June 13.
$1 = RMB 7.1566