On November 8, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 30/mt ($4.2/mt) decline in its scrap purchase price, following a RMB 30/mt rise on October 26, 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 2,520/mt ($355/mt), RMB 2,490/m ($351/mt) and RMB 2,460/mt ($346/mt) delivered, including 13 percent VAT, respectively.
Slack demand for finished steel in the traditional offseason has negatively affected the scrap market, resulting in Shagang Group’s reduction in its scrap purchase price.