Following successively rising global scrap prices, China’s Shagang Steel raised scrap purchase prices by RMB 150/MT and finish long steel prices by RMB 250/MT early March.
One of the largest ferrous scrap consumer in China, Shagang Jiangsu Steel group has raised its scrap buying price by Chinese RMB 150/MT (USD 24) today (i.e. 06th Mar’18). As per latest price update, Shagang is now paying RMB 2,550/MT (USD 402) inclusive of 17% VAT for heavy melting scrap not lesser than 6 mm in thickness delivered to its headquarter works in Zhangjiagang Province in China.
In the latest price revision, Shagang Steel also increased purchase prices for premium grade HMS 1 scrap not lesser than 20 mm in thickness by RMB 150/MT. Shagang is now paying RMB 2630/MT (USD 415) for scrap not lesser than 20 mm in thickness. While prices are at RMB 2450/MT (USD 386) and RMB 2320/MT (USD 366) for scrap with specification 4-6 mm and 2-4 mm thickness respectively.
During mid of January month amid sharply following global scrap prices, Shagang had aggressively cut scrap buying prices. Shagang witnessed bottom for scrap prices in the last price revision done on 16th Jan’18. In which prices dropped at RMB 2400/MT (USD 379) for 6-10 mm thickness. After which prices had remained unchanged almost for two months’ time.
Chinese scrap market turned active after Holidays for Lunar New Year. Sources are of the view that many of the steel mills have now turned active for scrap purchases. Following Shagang’s price rise, few other major mills in China have also raised their scrap buying prices.
Recently for Shandong, Guangdong and Fujian provinces domestic scrap buying prices have increased by RMB 100/MT, RMB 80/MT and RMB 30/MT respectively. Thus, scrap prices are likely to remain strong for coming days in China.
Shagang Steel is one of the leading steelmaker in China and has an annual production capacity of 31.9 MnT iron, 39.2 MnT steel and 37.2 MnT rolled products.
Shagang Steel raised long steel prices for early March – Shagang steel mill also raised long steel product prices for early March. The steelmaker raised 16-25 mm rebar prices by RMB 120/MT to RMB 4,300/MT (ex-works, including VAT). While the company also raised wire rod prices by RMB 250/MT(USD 39) in early March.
Leave a Reply