Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced a decline in its scrap purchase price. Accordingly, the company has decreased its scrap purchase price by RMB 30/mt ($4.2/mt), signaling bearish sentiments as regards the future prospects for the scrap market.
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have decreased to RMB 2,950/mt ($411/mt), RMB 2,920/m ($407/mt) and RMB 2,890/mt ($402.5/mt) delivered, including 13 percent VAT, respectively.
The previous big decreases in rebar futures prices in China had exerted a negative impact on the scrap market, while rebar futures prices have started to see a rebounding trend since October 12, which may bolster scrap prices in the near future.
$1 = RMB 7.1796