As per updates received from sources, eastern China’s largest private ferrous scrap consumer and EAF steelmaker – Shagang Jiangsu Steel group has announced the price hike for all grades of domestic steel scrap procurement by RMB 20-50/MT (USD 3-7) effective from 30th July’19.
Notably, Chinese ferrous scrap prices have gone up to a record high since the data maintained with SteelMint, seasonal supply tightness and stricter environmental inspection by the government can be seen as the major reasons behind this price hike. It is anticipated that local scrap prices in China will remain bullish in the near terms.
With recent price hike, Shagang steel is paying RMB 2,810/MT (USD 407) inclusive of 13% VAT for HMS 3 (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China, up RMB 50/MT against the last report of RMB 2,760/MT on 19th Jul’19. While HMS 1 (thickness not less than 20 mm) and HMS 2 (6-10 mm thickness) stands at RMB 2890/MT and RMB 2850/MT respectively.
Following the lead of the largest privately owned steel mill, many leading scrap consumers in the eastern region also likely to raise scrap purchase prices by RMB 20-50/MT in China.
Shagang Steel kept finish long steel prices flat for July shipments – Shagang was selling HRB400 16-25 mm dia rebar at RMB 4,170/MT (USD 605) over the end-July (21th-30th) period unchanged against the last set of prices for mid-Jul’19 shipments. While prices for HPB300 6.5 mm dia wire rod stood at RMB 4,300/MT (USD 624) ex-works basis, including VAT. Sluggish demand could have compelled steelmakers to keep finish steel prices flat despite increased raw materials input cost with high iron ore, coal and ferrous scrap prices on supply tightness.
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