Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 1 it has increased its scrap purchase price by RMB 100/mt ($15/mt), reflecting improved market sentiments after the rebounds seen in steel futures and spot prices. Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has risen to RMB 2,770-2,830/mt ($411-419/mt) delivered, including 13 percent VAT.
Previously on July 16, Shagang Group had decreased its scrap purchase price by RMB 100/mt ($15/mt). Since July 4 this year, Shagang Group had cut its scrap purchase price by RMB 730/mt ($108/mt) before the latest increase.
This latest move by Shagang indicates that the producer wants to increase scrap flow, seeing some rebound in finished steel prices and expecting that steel demand may show significant improvements from late August after the end of the off-season.
$1 = RMB 6.7467