Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 10 it has raised its scrap purchase price by RMB 200/mt ($30/mt), its third successive price increase, reflecting bullish sentiments towards the future prospects for the scrap market amid the increasing trends in ferrous metal futures prices. Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has risen to RMB 3,070-3,130/mt ($454-463/mt) delivered, including 13 percent VAT.
Since August 1, Shagang Group has increased its scrap purchase price by a total of RMB 400/mt ($60/mt).
The latest move by Shagang signals that it is seeking to boost its scrap flow amid the increasing scrap purchase prices of other steelmakers.
$1 = RMB 6.7612