Eastern China’s largest EAF steelmaker- Shagang group has hiked its scrap purchase price by RMB 50/t ($7) for all grades, effective from today (2nd Nov’20).
The purchase price for HMS (6-10 mm) now stands at RMB 2,790/t ($417), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China. While other grades including HMS (10-20 mm) thickness stands at RMB 2,820/t ($421) and HMS (not less than or equal to 20 mm) thickness stands at RMB 2,850/t ($426).
Factors behind price hike –
- Reduction of scrap suppliers’ shipment, the scrap arrival of steel mills decreased which resulted in increase in domestic scrap prices
- Chinese spot iron ore fines (Fe 62%) price opened at $115/ t last week and increased to $117.95/t towards the weekend due to an increased interest in December-arrival cargoes
- SHFE rebar Jan’21 futures contracts climbed by RMB 11 to RMB 3,719 today, SteelMint learned from credible sources
Shagang hikes construction steel prices for early-Nov’20 – Shagang Steel has raised its prices of construction steel for early-Nov sales. Rebar price has been increased by RMB 50 ($7.5) and wire rod and coiled rebar by RMB 100 ($15). Current price for rebar HRB400 (16-25mm) stands at RMB 3,950/t ex-mill, wire rod HPB300 (6-10mm) at RMB 4,210/t ex-mill and coiled rebar HRB400 (8-10mm) at RMB 4,250/t ex-mill.
Outlook – Due to limited scrap supply in some regions, it is expected that the overall scrap price may remain supported this week, as per market sources.
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