China's Shagang Steel Lifts Scrap Purchase Price by USD 12

Eastern China's largest ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has raised steel scrap purchase prices by RMB 80/MT (USD 12) effective from yesterday. After witnessing a price cut by RMB 30/MT on 26th Dec, the company might have lifted scrap prices amid tight availability and concerns of heavy smog in the domestic market.

Consequently, Shagang Steel is paying RMB 2,650/MT (USD 393) inclusive of 16% VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China, up RMB 80/MT against the last report of RMB 2,570/MT on 26th Dec'18.

Following Shagang's lead, many other leading scrap consumers like Maanshan steel, Nanjing Steel, Zenith Steel and Yonggang raised scrap purchase prices by RMB 30-80/MT in eastern China.

Shagang Steel rolled over finish long prices for mid-January shipment - The mill is selling its HRB400 16-25 mm dia rebar at RMB 3,880/MT (USD 573) over the December 11-20 period, stable against the last set of prices for early-Jan'19 shipments. While that for HPB 300 6.5 mm dia wire rod holds at RMB 3,980/MT (USD 594) over the same period. All prices are on an ex-works basis, including 16% VAT.

Shanghai rebar prices stand almost steady in the range RMB 3,740-3,780/t ex-warehouse as demand is sluggish ahead of the Lunar New Year holiday. Worsening pollution in north China cities such as Beijing may prompt the government to restrict steel-making in the near-term, said market participants.

Today, rebar prices in China's domestic market increased slightly amid a hike in futures.