Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of October 12 it has raised its scrap purchase price by RMB 100/mt ($15.5/mt), signaling its need to increase scrap flow. Accordingly, Shagang’s heavy scrap purchase price has increased to RMB 3,920/mt ($608/mt) delivered, including 13 percent VAT.
Previously on September 27, Shagang Group had raised its heavy scrap purchase price by RMB 50/mt ($7.7/mt).
Currently, production restrictions have eased to some extent in certain regions of China, exerting a positive impact on the demand for scrap and bolstered prices. At the same time, on the supply side volumes have been somewhat lower. Accordingly, this move by Shagang shows its more positive view of the near-term prospects for prices in the scrap market.