Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of December 21 it has increased its scrap purchase prices by RMB 150/mt ($23.5/mt), which is the third rise in December, signaling its eagerness to attract more deliveries. Accordingly, Shagang’s heavy scrap purchase price has reached RMB 3,650/mt ($573/mt) delivered, including 13 percent VAT.
Previously on December 16, Shagang Group had raised its heavy scrap purchase price by RMB 100/mt ($15.7/mt).
The third rise in December indicates steelmakers’ good demand for scrap due to the limited supply in winter, while steel prices are also at relatively good levels for now.
Following the previous rebounding trend seen in ferrous metal futures prices, they have indicated a downward correction over the past few trading days, which may exert a negative impact on the scrap market in the future.
$1 = RMB 6.3729