Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of December 11 it has raised its scrap purchase price by RMB 100/mt ($15.7/mt) after a long-standing downward trend, signaling its better sentiments for the future prospects for the market and the need to increase scrap flow. Accordingly, Shagang’s heavy scrap purchase price has increased to RMB 3,400/mt ($534/mt) delivered, including 13 percent VAT.
Previously on November 19, Shagang Group had cut its heavy scrap purchase price by RMB 80/mt ($12.5/mt).
Ferrous metal futures prices in China have moved on a rebounding trend and supply of scrap has been characterized by a certain shortage, exerting a positive impact on tsteel and scrap prices in the Chinese domestic market. Accordingly, market players hold a better outlook as regards the prospect for scrap prices.