Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Shagang Steel in eastern China, announced a price hike for ferrous scrap by CNY80/mt ($11/mt), effective from April 20.  

Tightened availability and increased finished steel prices led to the rise in ferrous scrap prices, breaking an almost four-month downtrend.

The Jiangsu region steelmaker increased its HMS scrap purchase prices by CNY80/mt ($11/mt) to CNY2280/mt for HMS (6-10mm thickness); CNY2320/mt (10-20mm thickness) and CNY2360/mt (thickness not less than 20mm), inclusive of 13pc VAT. 

Chinese steel scrap prices dropped to an almost 20- month low, according to a source, with Shagang Steel’s ferrous scrap purchase prices on the downtrend since November.

A few mills in Tangshan have received notice to scale down production to 50pc, to ensure air quality requirements are met. 

Resuming production activities is likely to keep demand high for ferrous scrap in the coming days in China, with tightened supply ensuring prices do not drop further.    


Billet prices in China’s domestic market up 

China’s domestic billet prices increased by CNY10/mt from late last week to CNY3,080/mt ex-Tangshan on Monday, while prices rose by CNY50/mt from the prior week. 

On the other hand, the country continues to import billets from India, Russia and Indonesia. 

Chinese importers booked 30,000mt of 165mm billet for May shipment at $370-375/mt cfr China, from an Indian steel maker. On the other hand, a June shipment cargo traded at $380/mt cfr China.


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