China: Shagang Steel Lifts Scrap Purchase Price by USD 8

Eastern China's largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has announced a price hike for all grades of domestic steel scrap procurement by RMB 60/MT (USD 8 ) effective from today 6th September'19. Notably, the said price hike comes just a week after 2 successive price cuts by a total of RMB 110/MT last week, amid continued volatility in the market.

As per updates, Shagang Steel is paying RMB 2,650/MT (USD 371) inclusive of 13% VAT for HMS 3 (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China, up RMB 50/MT against the last report of RMB 2,590/MT on 31st Aug'19. While HMS 1 (thickness not less than 20 mm) and HMS 2 (6-10 mm thickness) stand at RMB 2,730/MT and RMB 2,690/MT respectively.

The sudden increase in the purchase price, against the current trend can be mainly attributed to the slight increase in the Chinese finished steel prices recently. Chinese currency Yuan (RMB) has observed deprecation in the last one month and is currently standing RMB 7.1-7.2 against USD as against 6.8-6.9 levels one month back