Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of May 11 it has raised its scrap purchase prices by RMB 200/mt ($31.1/mt), signaling its bullish view of the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has risen to RMB 3,830/mt ($596/mt) delivered, including 13 percent VAT.
This is the second price increase by Shagang Group in May. Previously, the producer had increased its scrap purchase prices by RMB 100/mt ($15.6/mt) on May 7.
This move by Shagang reflects the bullish market conditions as competition between mills for scrap is increasing in China amid stronger steel demand and higher prices.
The import scrap market has also been on the rise. The latest bids have increased to $530-540/mt CFR, according to market sources, compared to $515-520/mt CFR on average earlier this week.
$1 = RMB 6.4254