According to Mining News Pro -As per market sources report to SteelMint, Shagang Steel is likely to raise scrap purchase price by RMB 80/MT from today however official confirmation on the same is still awaited. The company has raised long steel prices for late October.
One of the largest ferrous scrap consumers in east China - Shagang Jiangsu Steel group likely to raise its domestic scrap purchase prices by Chinese Yuan 80/MT (USD 9) effective from today (27th Oct). After rising prices for its finish steel deliveries for late October, the company continues to fetch scrap at higher prices ahead of production cuts in the country. Scrap prices likely to remain to higher side amidst firm expectation of demand and tightening its supply.
As per reports, Shagang will fetch RMB 2,780/MT (USD 400) inclusive of 16% VAT for HMS (6-10 mm in thickness) delivered to headquarter works situated in Zhangjiagang province in China, up RMB 80/MT as against last report of RMB 2,700/MT on 16th Oct’18.
In line with this for prices for other grades of scrap likely to move up by RMB 80/MT in the latest revision. Shagang would fetch as high as RMB 2880/MT (USD 415) for HMS 1 (thickness not less than 20 mm) while around RMB 2550/MT for melting scrap (2-4 mm thickness) inclusive of 16% VAT.
Shagang Steel raised finish steel prices for late October shipments - The mill is selling its HRB 400 16-25 mm rebar at RMB 4,730/MT (USD 681) over the period 21st-31st October, up RMB 50/MT from its last set of prices for products shipped during mid Oct’18.
In line with this, the mill also hiked selling price of HPB300 wire rod to RMB 4,810/MT (USD 693) over the same period and increased by the same margin. Both prices are on an ex-works basis, including VAT.
Long steel prices witnessed marginal uplift amid thin trading during mid-Oct’18 however, the expectation are not much of prop up in the spot market prices as demand has been not very strong.
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.
Recent rebar prices in eastern China were at RMB 4,650-4,680/MT, up RMB 90-100/MT from RMB 4,540-4,580/MT last week.
