On May 25, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced another decrease in its scrap purchase price. This time, the company has cut its scrap purchase price by RMB 50/mt ($7.1/mt), 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 2,810/mt ($399/mt), RMB 2,780/m ($394/mt) and RMB 2,750/mt ($390/mt) delivered, including 13 percent VAT, respectively.
Rebar futures prices in China have indicated big decreases amid declining iron ore prices, negatively affecting the scrap market.
$1 = RMB 7.0529