China's largest ferrous scrap user, Jiangsu Shagang Group, lifted its buying prices for heavy melting scrap by Yuan 80-100/mt ($12-$15/mt) Sunday. This marked the steel mill's first increase since February 16.
Shagang will pay Yuan 1,550/mt, including 17% value added tax, delivered to Zhangjiagang for heavy melting scrap with a minimum width of 6 millimeters, according to a company source.
Previously, Shagang's scrap buying prices had fallen consistently from the year-to-date high of Yuan 1,820/mt in February due to abundant supply of domestic scrap caused by the crackdown on induction furnace capacity in China.
Shagang intends to attract more deliveries through higher buying prices as it it has been experiencing lower scrap deliveries recently, the company source said.
Also on Sunday, some major mills in eastern China, Zenith, Yonggang, Magang, Huaigang and Xingcheng lifted scrap buying prices by Yuan 50-80/mt.
