China’s largest electric arc furnace (EAF) steelmaker, Jiangsu Shagang Group, increased its scrap buying prices on 13 December 2022. This is its third consecutive revision in December. On a combined basis, the prices are up by RMB 180/t ($26/t).
The steelmaker, on 13 December, raised prices by RMB 80/t ($11/t) for all grades against the last revision. After the latest revision, HMS (6-10 mm) prices are at RMB 3,090/t ($444/t) delivered to headquarters, including 13% VAT, effective from 13 December.
The company raised its bids in response to the upward trend in finished steel prices in China — in order to secure additional scrap before the holidays start.
Market highlights
- Imported scrap prices up w-o-w: Prices of US-origin HMS and shredded scrap stood at $389/t and $409/t, respectively, slightly up $2/t w-o-w.
- Local billets prices increase w-o-w: Domestic billets prices in China’s Tangshan increased by RMB 60/t ($9/t) w-o-w to RMB 3,690/t ($530/t), inclusive of 13% VAT on 13 December.
- Rebar futures up w-o-w: However, China’s SHFE rebar futures contract for May 2023 delivery closed on 14 December at RMB 3,937 /t ($567/t), significantly up by RMB 155/t w-o-w.
- Iron ore spot prices stable d-o-d: The Fe 62% iron ore index was at $110.30/DMT CFR North China on 13 December, slightly up $0.05/t from the last closing. Seaborne purchasing interest was modest, with liquidity focused on the mainstream medium-grade fines.
Outlook
For the upcoming long Chinese New Year holidays and looking at the active finished steel market in China, it is expected that scrap prices may rise slightly in the near future.
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