On September 16, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 50/mt ($7/mt) rise in its scrap purchase price, following a RMB 50/mt drop on September 2, signaling improved sentiments as regards the future prospects for the scrap market.
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have increased to RMB 2,520/mt ($355/mt), RMB 2,490/m ($351/mt) and RMB 2,460/mt ($346/mt) delivered, including 13 percent VAT, respectively.
Increasing coking coal and coke prices have pushed up the production cost of steel, while the stock replenishments ahead of the National Day holiday (October 1-8) have also bolstered scrap prices.