China: Shagang Steel Raises Scrap Purchase Price Again by USD 7

Eastern China's largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has announced second price hike in just three days for all grades of domestic steel scrap procurement, increasing its purchase price by RMB 50/MT (USD 7) effective from today 22nd April'20.

The company increases its purchase price for HMS (6-10 mm thickness), by RMB 50/MT (USD 7) to 2330/MT (USD 329) inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang north of Shanghai in China, in comparison with the last price revision to RMB 2280/MT registered two days back on 20th April'20.

On the other hand, other higher grades including HMS (thickness not less than 20 mm) and HMS (10-20 mm thickness) stand at RMB 2,410/MT (USD 340) and RMB 2,370/MT (USD 335) respectively.

Domestic scrap price continued to rise this week. It has been observed that mills are having low levels of inventories and looking to replenish their scrap stock, which is contribution to the price rise. The scrap market in the region is expected to remain strong in the near future, but with limited range.