China’s largest EAF steelmaker- Shagang steel has recently announced its third quarter results. The company registered total revenue of RMB 3,913 mn in Q3 CY’20, up by 5% q-o-q. The company recorded its gross profit at RMB 515.90 mn in Q3. Revenues reflect an increase in demand for the Company’s products and services due to favourable market conditions.
Company raised scrap purchase price by RMB 50 ($7) –Shagang group hike its scrap purchase price by RMB 50/t ($7) for all grades, effective on (26th Oct’20). The price for HMS (6-10 mm) currently assessed at RMB 2,740/t ($407), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China.
Other grades such as HMS (10-20 mm) thickness stands at RMB 2,770/t ($412) and HMS (not less than or equal to 20 mm) thickness stands at RMB 2,800/t ($416).
Notably, Shagang raised scrap prices after two weeks and the fourth successive price revision observed in Oct’20. Due to limited scrap resources, steel mills have increased the scrap purchase price to replenish inventories.
DCE to launch steel scrap futures – Dalian Commodity Exchange (DCE), China’s biggest iron ore futures market, is planning to launch steel scrap futures to reduce reliance on iron ore imports. “The scrap futures contract will be based on shredded scrap which is one of the key steelmaking raw materials for the Chinese steel mills and can be used by all kinds of furnaces”, DCE senior manager Yang Shuai said in a conference last week.
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