Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of June 16 it has raised its scrap purchase price by RMB 80/mt ($12.5/mt), signaling its bullish sentiments as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has increased to RMB 3,830/mt ($598/mt) delivered.
Previously on June 11, Shagang Group had raised its scrap purchase price by RMB 100/mt ($16/mt).
This latest move by Shagang signals that the producer wants to increase supply of local scrap amid the recent improvements among players in the steel market.