China's Shagang Steel Raised Scrap Purchase Prices by USD 14
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Eastern China's largest ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has finally raised its scrap purchase price by RMB 100/MT (USD 14.5) effective from 13th December delivery. Amid rising finish steel prices in the domestic market, steelmaker has lifted scrap prices after witnessing almost six price cuts in Nov'18.
Consequently, Shagang Steel is paying RMB 2,520/MT (USD 365) inclusive of 16% VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang province in China, up RMB 100/MT as against the last report of RMB 2,420/MT on 29th Nov'18.
Also, the prices for other grades of scrap have lifted up by around RMB 100/MT in this revision. It is paying RMB 2,620/MT (USD 379) for HMS 1 (thickness not less than 20 mm) while around RMB 2,420/MT for melting scrap (thickness 4-6 mm). New prices stand at around RMB 2,640/MT for charging scrap 1 and RMB 2,570/MT for HMS 2 (6-10 mm) inclusive of 16% VAT.
Steel prices in China have moved up towards the end of this week with China's major steelmaking cities - Tangshan and Xuzhou ordering steel capacity cuts in order to fight against pollution.
Domestic scrap prices exhibit upturn in the major provinces - Following Shagang's lead, leading scrap consumers like Maanshan, Zenith, Nanjing and Xingcheng steel reduced scrap purchase prices by RMB 100-120/MT in eastern China.
Shagang rolled over finish long prices for mid-December shipment - The mill is selling its HRB400 16-25 mm dia rebar at RMB 4,100/MT (USD 594) over the December 11-20 period, stable against the last set of prices for early Dec'18 shipments. While that for HPB300 6.5 mm dia wire rod holds at RMB 4,160/MT (USD 602) over the same period. HRB 400 8-10 mm dia bar-in-coil continues to fetch RMB 4,230/MT, all prices are on an ex-works basis, including 16% VAT.
Shagang Steel is one of the leading steelmakers in China and with an annual production capacity of 31.9 MnT iron, 39.2 MnT steel and 37.2 MnT rolled products.
