Shagang Group, China’s leading electric arc furnace (EAF) steelmaker, headquartered in Jiangsu, raised its scrap procurement prices by RMB 50/tonne ($8/t), effective from 7 April, 2022 against the last hike on 1 April, 2022. This hike was attempted to secure supplies and stall deliveries from declining further.
Post-revision, current prices of HMS (6-10mm) are at RMB 4,020/t ($631/t) delivered to headquarters, including 13% VAT.
China’s market highlight
- Securing scrap deliveries: The company raised bids in order to secure its supplies from declining that had been impacted because of Covid curbs.
- China’s billet price hike: Steel billet prices in China’s Tangshan rose by RMB 20/t ($3/t) on 6 April, 2022. Prices stood at RMB 4,880/t ($767/t), inclusive of 13% VAT, as against RMB 4,860/t ($764/t) on 1 April, 2022. However, steel demand and market sentiments were still dampened due to the Covid crisis.
- Supportive steel market: China’s major steel prices were supported by high raw material prices and a spate of stimulus policies issued by Beijing, market sources noted.
China’s Shagang Steel raised rebar offers by RMB 100/t for early April, 2022 sales. Currently, rebar (16-25 mm) prices are at RMB 5,300/t ($834/t), wire rods (6-10 mm) at RMB 5,310/t ($836/t) and coiled rebar (8-10 mm) prices are trading at RMB 5,400/t ($850/t). All prices are on ex-mill basis, including VAT.
- China’s spot iron ore prices up: Prices of Chinese spot iron ore fines of Fe 62% touched $160/t CNF China today, increasing by $5-10/t as against the price seen in early March, 2022.
Outlook
Due to the impact of the pandemic in some regions, scrap supply is tight at present as some EAF-based steel mills have stopped their production. So, it is expected that scrap prices will fluctuate in the near term.
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