Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of December 16 it has increased its scrap purchase price by RMB 100/mt ($15.7/mt), signaling its bullish sentiment as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has increased to RMB 3,500/mt ($550/mt) delivered, including 13 percent VAT.
Previously on December 11, Shagang Group had raised its heavy scrap purchase prices by the same amount.
This rise is the second increase in December, reflecting firm demand from steelmakers due to the limited supply in winter.
Ferrous metal futures prices in China have also seen a rebounding trend, exerting a positive impact on steel prices in the Chinese domestic market and contributing to the rise in scrap prices.
$1 = RMB 6.3637