On October 10, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a decline in its scrap purchase price. Accordingly, the company has decreased its scrap purchase price by RMB 50/mt ($7/mt), signaling cautious 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 2,980/mt ($415/mt), RMB 2,950/m ($411/mt) and RMB 2,920/mt ($407/mt) delivered, including 13 percent VAT, respectively.
Rebar futures prices in China have moved on a downward trend since September 21, exerting a negative impact on scrap prices.
$1 = RMB 7.1781
