China - Shagang Steel Hikes Domestic Scrap Purchase Price by USD 21

Eastern China's largest private ferrous scrap consumer and EAF steelmaker -Shagang Jiangsu Steel group has announced a third successive price hike for all grades of domestic steel scrap procurement, after a gap of almost two weeks, while new prices are effective from today, 6th May'20.

The company has increased its scrap purchase price sharply over the course of May 1st week, by a total of RMB 150/MT (USD 21). The purchase price for HMS (6-10 mm thickness) has now climbed up to RMB 2480/MT (USD 350), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang North of Shanghai in China, in comparison with the last revision to RMB 2,330/MT on 22nd April'20.

Meanwhile, other higher grades including HMS (thickness not less than 20 mm) and HMS (thickness 10-20 mm) now stand at RMB 2,520/MT (USD 355) and RMB 2,560/MT (USD 361) respectively.

The market has reopened after the five days May-holidays with increased transportation cost to scrap suppliers. It is expected that scrap prices may increase in near term as steel mills are under pressure to increase their price.

`Inputs from SteelHome