Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of September 3 it has raised its scrap purchase prices by RMB 80/mt ($12.4/mt), signaling its bullish sentiments as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has increased to RMB 3,840/mt ($595/mt) delivered, including 13 percent VAT.
Previously on August 19, Shagang Group had cut its heavy scrap purchase price by RMB 50/mt ($7.7/mt).
This move by Shagang signals its bullish view of the prospects for the scrap market amid tighter supply and rising ferrous metal futures prices.