Scrap buying prices in east China Move closer to $530

Tuesday, January 13, 2011

Major east China steelmakers raised domestic scrap buying prices by as much as RMB 250/tonne ($38/t) on 9 January to encourage dealers to sell. Sunday’s hike lifted buying prices for heavy melting scrap to a recent record high of around RMB 3,500/t ($528/t).

In east China’s Jiangsu province, market leader Shagang raised its purchase prices by a large RMB 250/t ($38/t) Sunday to take its buying price for heavy melting scrap (>6mm) to RMB 3,500/t ($528/t) on a delivered to mill basis with 17% VAT. On the same day, Xingcheng Special Steel lifted its buying price for the same grade to RMB 3,510/t ($529/t) with VAT from RMB 3,340/t ($504/t) previously.

Meanwhile, Suzhou Steel Group (Sugang) raised its scrap buying prices by RMB 50/t ($8/t) on 9 January as well, to take its current buying price for heavy melting scrap (>6mm) to RMB 3,500/t ($528/t). Thus, from 4-9 January the specialty steelmaker had raised its scrap prices three times for an accumulated increase of RMB 250/t ($38/t).

“Mills are raising their buying prices step-by-step since traders are looking forward to higher prices and because transactions are few. It is possible that mills will have to raise their prices further this week.

Source: scrapmetalsandplastics.com