China's Shagang Steel raises scrap purchase price by RMB 50

Eastern China's largest private ferrous scrap consumer and EAF steelmaker - Jiangsu Shagang Group has announced a price hike for all the grades for domestic scrap procurement on increased demand for inventory replenishment by the steelmakers.

The company has increased the purchase price by RMB 50/MT ($ 7) in just five days after a small decline in prices was observed in the last week and the new prices are effected from today, 24th June'20.

The purchase price of HMS (6-10 mm) thickness has now stands at RMB 2630/t ($ 372), inclusive of 13% VAT delivering to headquarters works at Zhangjiagang North of Shanghai in China, in comparison with RMB 2580/t last week on 18th June'20.

While other higher grades HMS (not less than and equal to 20 mm) thickness stands at RMB 2710/t ($ 383) and HMS (10-20 mm) thickness has stands at RMB 2670/t ($ 377) respectively.

Although the finished steel prices being on the lower side will hinder any sharp growth in scrap prices while the upcoming festival season (Dragon boat) later this week could have encouraged the mills to restock scrap inventories before hand, driving prices up, to a certain extent.