Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of June 11 it has raised its scrap purchase prices by RMB 100/mt ($16/mt), signaling its more optimistic sentiment as regards the future prospects for the market and its need to attract more scrap volumes. Accordingly, Shagang’s heavy scrap purchase price has reached RMB 3,750/mt ($587/mt) delivered, including 13 percent VAT.
Previously, on May 26, Shagang Group had cut its scrap purchase price by RMB 50/mt ($7.8/mt).
This move by Shagang indicates that it has changed its view as regards the future market prospects amid the recent rebounds in ferrous metal futures prices and steel prices.