Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of May 13 it has raised its scrap purchase prices by RMB 270/mt ($42/mt), signaling its bullish view of the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has risen to RMB 4,100/mt ($635/mt) delivered, including 13 percent VAT.
This is the fourth price increase by Shagang Group in May. Previously, the producer had increased its scrap purchase prices by RMB 80/mt on May 1, by RMB 100/mt on May 7 and by RMB 200/mt on May 11.
This move by Shagang signals the bullish market conditions amid strong steel demand and higher prices.
Import prices for scrap in China have increased as well. The tradable level for HS scrap has reached $560-565/mt CFR, up by $25-30/mt from the level earlier this week. Offers from Japan have been heard at $570/mt CFR.
$1 = RMB 6.4612