China: Shagang Steel Raises Scrap Purchase Price by USD 11

Eastern China’s largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has announced a price hike for all grades of domestic steel scrap procurement by a significant margin, increasing its purchase price by RMB 80/MT (USD 11) effective from today 7th November’19. The price hike comes after 3 weeks of unchanged bids by the company.

As per updates, Shagang Steel is paying RMB 2,780/MT (USD 396) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China, up by RMB 80/MT against the last report of RMB 2,700/MT on 18th Oct'19. While other higher grades including HMS (thickness not less than 20 mm) and HMS (10-20 mm thickness) stands at RMB 2,860/MT (USD 407) and RMB 2,820/MT (USD 402) respectively.

Lower inventories of scrap with the Chinese steel mills along with tightening availability can be attributed to a sharp rise in scrap purchase prices. Other mills have already raised scrap purchase prices on account of scrap availability moving down in winter months.