BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

Chinese domestic scrap prices rise sharply as mills raise bids

...

Melting Scrap

BigMint Bureau

740 Reads

6 May 2021, 15:48 IST

Chinese domestic scrap prices rise sharply as mills raise bids

China's largest EAF steelmaker- Shagang Steel has raised its first scrap purchase price today for May'21. The company has increased scrap purchase prices by RMB 80/t ($12) for all grades. This hike has been done in order to secure scrap volumes and was also influenced by the recent hike in imported scrap offers from Japan.

Currently, for HMS (6-10 mm) the company is paying at RMB 3,620/t ($559), inclusive of 13% VAT, delivered to headquarters works at Zhangjiagang North of Shanghai in China. Similarly, HMS (10-20 mm) thickness stands at RMB 3,650/t ($563) and HMS (not less than or equal to 20 mm) thickness is at RMB 3,680/t ($568).

Factors behind the price hike -

Spot iron ore prices rise further - Spot iron ore Fe 62% fines price yesterday moved up by $3.05/t to $192.7/t CFR China as bidding interest rose in the spot market. Strength in the downstream steel market in China buoyed optimism in the near-term iron ore demand. Spreads between higher and low-grade ore continued to widen. Also, Chinese steel prices continued to strengthen during the Labor Day holiday, on tightening steel market.
Japanese scrap prices expected to rise, market awaits Kanto results - Japanese scrap trades have remained slow in the past one week due to Golden Week holidays, however, traders are indicating offers to rise. Japan's monthly Kanto Tetsugen scrap export tender is scheduled on 11th May'21, sources have confirmed to SteelMint. Nearly, around 20,000 t of Japanese H2 scrap is auctioned via Kanto export tender every month and serves as a benchmark for the Japanese scrap export market.
Scrap supply tightness - Higher price of finished steel and billet impacted demand from supportive downstream demand in peak season. Mills are producing steel and earning higher profits. Hence the mills have raised scrap bids in order to secure scrap supplies.
Chinese billet prices surge after holidays - Chinese domestic billet prices have increased significantly after the Labour holidays and have opened with a hike of RMB 140 ($22) at RMB 5,130/t ($792/t) ex Tangshan including 13% VAT. The price rise was amid increased SHFE rebar futures, which rose by RMB 274 ($42) and today closed at RMB 5,665/t ($875/t).