Eastern China’s largest private ferrous scrap consumer and EAF steelmaker – Shagang Jiangsu Steel group has announced price hike for all grades of domestic steel scrap procurement by RMB 50/MT (USD 7) effective from yesterday 21st Aug’19. Notably, after witnessing successive 4 price cuts by a total RMB 160 in the first two weeks of Aug’19, the steelmaker has lifted scrap prices on environmental issues and tightening supply again.
As per updates, Shagang steel is now paying RMB 2,700/MT (USD 381) 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 2,650/MT on 13th Aug’19. While HMS 1 (thickness not less than 20 mm) and HMS 2 (6-10 mm thickness) stands at RMB 2,780/MT and RMB 2,740/MT respectively.
Turkey imported scrap prices inch down amid absence of major trades – The prolonging silence by Turkish steelmakers in buying imported scrap has put pressure on global imported scrap prices further, pulling SteelMint’s US-origin HMS 1&2 (80:20) scrap assessment down to USD 278-280/MT, CFR Turkey against the last week report of USD 282-283/MT, CFR. While assessment of European origin HMS 1&2 (80:20) currently stands at USD 272-273/MT, CFR Turkey.
Increasing decoupling between global iron ore and imported scrap prices – Iron ore fine prices have observed a sharp fall by around USD 32-35/MT to USD 83/MT, CFR against USD 115-117/MT, CFR over the last one month time. While US-origin HMS 1&2 (80:20) prices have moved down around USD 25/MT to USD 280/MT against USD 305/MT, CFR Turkey level a month back. Most of the participants keep eyes on Chinese finish steel prices to judge the market direction as the trade tensions between China-US has not fully cooled down.
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