Following the previous price rise on December 3, on December 9 Jiangsu-based Shagang Group, China’s largest private steelmaker, announced another rise in its scrap purchase price. This time the company has raised its scrap purchase price by another RMB 50/mt ($7/mt), reflecting the prevailing bullish sentiments as regards the future prospects for the scrap market.
Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has increased to RMB 3,160-3,210/mt ($454-461/mt) delivered, including 13 percent VAT.
Since the beginning of December, rebar futures prices in China have moved on an overall uptrend, positively affecting the scrap market.
$1 = RMB 6.9588