On November 12, 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 decrease on November 8, 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 2,490/mt ($351/mt), RMB 2,460/m ($346.5/mt) and RMB 2,430/mt ($342/mt) delivered, including 13 percent VAT, respectively.
Ongoing sluggish demand for finished steel in the traditional offseason has exerted a negative impact on the scrap market, resulting in another reduction in Shagang Group’s scrap purchase price.