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Shagang to restructure China’s largest scrap firm

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.
 

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