On July 4, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 50/mt ($7.3/mt) cut in its scrap purchase price, following a RMB 30/mt drop on June 24, reflecting ongoing 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 2,480/mt ($364/mt), RMB 2,450/m ($360/mt) and RMB 2,420/mt ($355/mt) delivered, including 13 percent VAT, respectively.
The ongoing poor performance of the finished steel market due to the widespread rainy weather and high temperatures has negatively affected the scrap market.
