Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 17 it has raised its scrap purchase price by another RMB 150/mt ($22/mt), reflecting bullish sentiments towards the future prospects for the scrap market. Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has risen to RMB 3,370-3,430/mt ($498-507/mt) delivered, including 13 percent VAT.
Overall, since August 1, Shagang Group had raised its scrap purchase price by RMB 700/mt ($103/mt).
The latest move by Shagang signals that the producer is seeking to attract more scrap supplies. The other steelmakers are expected to follow the same pattern and issue new purchase scrap prices at higher levels in the coming days.
$1 = RMB 6.7746