Shagang Steel – China’s largest ferrous scrap consumer has increased the scrap buying prices further. Scrap prices for scrap( not less than 6mm in thickness) stands at RMB 2,130/MT (USD 321). Previous price assessment was at RMB 1,980/MT (USD 299). Thus the steel maker has raised scrap purchase price by about RMB 150/MT (USD 22).
Following this, few other major Chinese steel mills have raised scrap purchase price. Rizhao Steel has also raised scrap buying price by Yen 120/MT (USD 18).
This increase in price is owing to the upcoming winter season, with an aim to stock enough material to fulfill the demand. Rising prices in domestic market has made high grade scrap exports from the country non viable.
The Shagang Steel Group has hiked its prices thrice in Oct’17 alone and the prices reached are highest compared to last three years. This increase in prices is expected to witness a similar hike in the prices of other Chinese and global steel producers owing to the increasing demand and upcoming winters.
Shagang steel has annual production capacity at 31.9 MnT iron, 39.2 MnT steel and 37.2 MnT rolled products. It manufactures leading steel products like wide heavy plate, hot-rolled strip coil, high-speed wire rod, large bundle of wire rod, ribbed steel bar, special steel round bar along with 60 series and more than 700 varieties with nearly 2000 specifications.
Leave a Reply