On June 24, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 30/mt ($4.4/mt) cut in its scrap purchase price, following a RMB 50/mt rise on May 12, reflecting 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 increased to RMB 2,530/mt ($371/mt), RMB 2,500/m ($367/mt) and RMB 2,470/mt ($362/mt) delivered, including 13 percent VAT, respectively.
Due to the widespread rainy weather and high temperatures in June, demand for finished steel has been slack, exerting a negative impact on the scrap market.
