China – Eastern China’s Shagang Group, the country’s largest scrap consumer, has signed a framework agreement to restructure China’s leading scrap recycling firm, Fengli Group, Shagang. Both companies are located in Jiangsu province’s Zhangjiagang city.
‘The aim of the reconstruction is to help the two companies to come together to better weather the chill in the steel market,’ a Shagang official explained to Platts Steel Business Briefing. ‘Hopefully, this will also help Shagang to ensure a steady supply of ferrous scrap and to lower its scrap costs.’
In 2011, Shagang purchased around 3 million tonnes of ferrous scrap domestically, with Fengli supplying around 15% of the total. Fengli’s total ferrous scrap sales exceeded 2 million tonnes last year.