China: Shagang Steel Raises Scrap Purchase Price Again by USD 11

Eastern China's largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has announced another price hike for all grades of domestic steel scrap procurement, after almost six days since last week's sharp price hike, and the new prices are effective from today, 12th May'20.

The company has increased its scrap purchase price by a further RMB 80/MT (USD 11). The purchase price for HMS (6-10 mm thickness) has now stands at RMB 2560/MT (USD 361), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang North of
Shanghai in China, in comparison with the last revision to RMB 2,480/MT on 6th May'20.

Prior to this, the same level of the purchase price for the HMS (6-10 mm) was recorded in the later part of Mar'20, just before the two months lockdown in Hubei province was lifted.

Meanwhile, other higher grades including HMS (thickness not less than 20 mm) and HMS (thickness 10-20 mm) now stand at RMB 2,640/MT (USD 372) and RMB 2,600/MT (USD 367) respectively.

On one hand, the demand of scrap is continuously increasing, as mills are going back to regular production levels, while on the other hand, scrap supply remains tight, resulting in a continuous rise in prices, which have increased by RMB 360/MT (USD 51) over the last 30 days, in a strong rebound seen from April 2nd week.