Following hike in long steel prices and supply tightness, Shagang has raised its scrap purchase prices by RMB 150 (USD 22) recently amid increased scrap usage on environmental regulations.
One of the largest ferrous scrap consumers in east China, Shagang Jiangsu Steel group has raised its domestic scrap purchase prices by Chinese Yuan (RMB) 150/MT (USD 22). After witnessing price hike of RMB 100/MT on 02nd Aug’18, the company has raised its prices further amid tightening supply-demand for finish steel in spot as well as export markets.
As per latest reports, Shagang is now paying RMB 2,590/MT (USD 380) inclusive of 17% VAT for HMS (6-10 mm in thickness) delivered to its headquarter works situated in Zhangjiagang province in China, up RMB 150/MT as against last report of RMB 2,440/MT.
In line with this, the steelmaker has also raised purchase prices for other grades of scrap by RMB 150/MT in the latest price revision and paying RMB 2670/MT (USD 392) for HMS 1 (thickness not less than 20 mm), RMB 2690/MT for charging scrap 1 and RMB 2630/MT for HMS 2 (6-10 mm). While new prices stand at RMB 2490/MT and RMB 2360/MT for melting scrap with specification 4-6 mm and 2-4 mm thickness respectively inclusive of 17% VAT.
Shagang has witnessed three successive price revisions in last two weeks time since 28th July in China looking at continuously rising finish steel prices.
Shagang Steel is one of the leading steelmakers in China and with an annual production capacity of 31.9 MnT iron, 39.2 MnT steel and 37.2 MnT rolled products.
Domestic scrap purchase prices increase by USD 15-30/MT – In last couple of days, many of the leading scrap consuming steelmakers have raised their purchase prices successively by RMB 100-200/MT in eastern China.
Province-wise domestic scrap reference prices as on 07th Aug’18 –
| Domestic scrap HMS (6-10 mm), Prices in RMB/MT including 17% VAT | |||
| Province | Origin | Prices as on 7th Aug’18 | Change against last report on 02 Aug’18 |
| Shandong | Jinan | 2,670 | +200 |
| Jiangsu | Zhangjiagang | 2,590 | +150 |
| Fujian | Fuzhou | 2,480 | +10 |
| Anhui | Maanshan | 2,650 | +200 |
| Zhejiang | Taizhou | 2,580 | +130 |
| Guangdong | Guangzhou | 2,500 | +70 |
| Tianjin | Tianjin | 2,660 | +100 |
| Hebei | Handan | 2,620 | +50 |
Source: SteelMint Research; Exchange Rate: 1 USD = 6.82 RMB
Shagang hiked finish long steel prices for early August shipments – The mill will sell its HRB 400 16-25 mm rebar at RMB 4,350/MT (USD 638) over the period 01st-10th August, up RMB 100/MT from its asking price for products shipped during late Jul’18.
In line with this, for its HPB300 wire rod, the mill has kept prices at RMB 4,480/MT (USD 657) over the same period, up RMB 50/MT from prices in late July. Both prices are on an ex-works basis, including VAT.
Leave a Reply