SHANGHAI Chinese steel mills and traders returned to the ferrous scrap import market this week, hot on the heels of a rise in domestic steel prices.
Shagang Group Inc., Chinas largest scrap consumer, booked four bulk cargoes of U.S. material this week. Three of those cargoes were for shredded scrap booked at about $365 per tonne c.f.r. and one cargo of an 80-20 mix of No. 1 and No. 2 heavy melting scrap at $365 per tonne c.f.r., a company source told AMM sister publication Steel First.
Fengli Group Co. Ltd, one of the largest scrap traders in China, is also in talks for U.S. scrap imports.
"We are finalizing two deals for U.S. scrap at similar price levels this week, and prices may rise next, because Asian buyers have returned to the market," a source at the trading house said.
Steel mills in eastern Chinaincluding Shagang, Changzhou Zenith Steel Co. Ltd. and Xingcheng Special Steel Co. Ltd.increased scrap buying prices by 150 yuan ($24) per tonne July 24 to 2,500 to 2,600 yuan ($405 to $421) per tonne due to gains in the rebar and iron ore markets.
Spot rebar prices in Shanghai have risen by more than 250 yuan ($41) per tonne since mid-June, while spot iron ore prices to China have gained about $20 per tonne over the same period. Domestic heavy scrap prices were little changed over the period, however.
A version of this article was first published in AMM sister publication Steel First.