China’s largest electric arc furnace (EAF) steelmaker, Jiangsu Shagang Group, raised its scrap buy prices again on 15 November 2022, and from 8 November with three consecutive revisions price raised by $42/t.
The steelmaker has lifted prices by RMB 100/t ($14/t) for all grades against the last revision on 11 November. After the latest revision, HMS (6-10 mm) prices are RMB 2,910/t ($413/t) delivered to headquarters, including 13% VAT, effective from 15 November.
The company continues to lift its scrap buy prices to prevent ever-declining deliveries. With minimal purchases, mills are not finding any positive direction in the market, which is still reeling under strict Covid-19 regulations.
Market highlights-
- Local billets prices up w-o-w: Domestic billets prices in China’s Tangshan increased by RMB 50/t ($7/t) w-o-w to RMB 3,520/t ($500/t), inclusive of 13% VAT on 14 November.
- Rebar futures up w-o-w: China’s SHFE rebar futures contract for January 2023 delivery closed on 14 November at RMB 3,648/t ($518/t), up by RMB 113/t ($16/t) w-o-w.
- Iron ore spot prices up d-o-d: The Fe 62% iron ore index was at $95.3/dry mt CFR North China on 14 November, up $3.05/dmt from 11 November. Seaborne buying activity remained low as most market participants preferred to wait and watch.
- Imported scrap prices down w-o-w: Prices of US-origin HMS and shredded material stood at $364/t and $ 384/t, respectively, declining by $10/t w-o-w.
Outlook
Shagang Steel will hold some more quantity for restocking before the winter season, in the anticipation that prices might increase in the near term.
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