As per updates received from sources, eastern China’s largest private ferrous scrap consumer and EAF steelmaker – Shagang Jiangsu Steel group has announced the price hike for all grades of domestic steel scrap procurement by RMB 60/MT (USD 9) effective from 19th July’19.
It was expected that Chinese domestic scrap prices might increase following supply tightness in the market. The new rounds of inspection by the Chinese government at major steel works to ensure environmental protection and the hot summer weather has led to keep Chinese domestic scrap availability very limited. On the other hand, heavy rains in the Southern regions of Yangtze river have disrupted scrap deliveries to the steel mills. Thus, it is anticipated that local scrap prices in China will remain firm in the near terms.
With recent price hike, Shagang steel is paying RMB 2,760/MT (USD 401) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China, up RMB 60/MT against the last report of RMB 2,700/MT on 29th Jun’19.
Following the largest privately owned steel mill’s lead, many leading scrap consumers in the eastern region also likely to raise scrap purchase prices by RMB 60-80/MT in China.
Shagang Steel had rolled over finish long prices for mid-July shipments – Shagang was selling HRB400 16-25 mm dia rebar at RMB 4,170/MT (USD 607) over the mid-July (11th-20th) period steady against the last set of prices for early-Jul’19 shipments. While prices for HPB300 6.5 mm dia wire rod stood at RMB 4,300/MT (USD 625) ex-works basis, including VAT.
Leave a Reply