Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of September 27 it has raised its scrap purchase prices by RMB 50/mt ($7.7/mt), signaling its need to get more supply after the scrap flow went down since the middle of the month. Accordingly, Shagang’s heavy scrap purchase price has increased to RMB 3,820/mt ($590.4/mt) delivered, including 13 percent VAT.
Previously on September 17, Shagang Group cut its heavy scrap purchase prices by RMB 70/mt ($10.9/mt).
This move by Shagang signals some tightening of supply and the need of mills to attract slightly higher supply, even taking into account continuous crude steel production cuts.