Chinese steel mills and traders returned to the ferrous scrap
import market this week, hot on the heels of a rise in domestic
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
A version of this
article was first published in AMM sister publication Steel