China: Shagang Steel lifts scrap buy prices by $15/t after a week's gap

China's leading electric arc furnace (EAF) steelmaker, Jiangsu Shagang Group, has hiked its scrap purchase prices after a week's gap. Due to improvement in demand and sales in the finished steel market, scrap prices continued to show positive signs.

The steelmaker has announced a hike in scrap purchase prices by RMB 100/t ($15/t) for all grades against the last revision on 1 August. After the current revision, HMS (6-10mm) prices are at RMB 2,870/t ($426/t) delivered to headquarters, including 13% VAT, effective from 8 August.

Market highlights:

• Billet prices stable: Steel billet prices in China's Tangshan were at RMB 3,760/t ($556/t), inclusive of 13% VAT, on 5 August. Meanwhile, spot prices are stable against last week, as per data maintained with SteelMint.
  
  
• Rebar futures head north: China's SHFE rebar futures contract for October delivery closed on 8 August at RMB 4,136/t ($612/t), witnessing a rise of RMB 43/t ($6/t) w-o-w.
  
  
• Spot iron ore prices down: Seaborne iron ore prices decreased by $7/t w-o-w on 5 August. The 62% Fe iron ore index stood at $107/t CFR North China.
  
  
• Imported scrap prices fall slightly: Imported scrap prices fell $2/t against last week's closing. Prices of USA-origin shredded material stood at $414/t, while HMS was assessed at $394/t, both on a CFR basis.
  
  

Outlook
The demand for scrap will probably continue to improve in the coming months since this is the busiest time for construction activities in China. This may keep bids for scrap supported.