On December 19, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a rise in its scrap purchase price. Accordingly, the company has raised its scrap purchase price by RMB 50/mt ($7/mt), signaling improved sentiments as regards the future prospects for the scrap market.
As a result, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have increased to RMB 3,020/mt ($414/mt), RMB 2,990/m ($409.5/mt) and RMB 2,960/mt ($405/mt) delivered, including 13 percent VAT, respectively.
The widespread snowy and rainy weather conditions in China have resulted in difficulty in transportation, reducing the supply of scrap to the spot market and bolstering scrap prices to a certain degree.
$1 = RMB 7.0982