Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 6 it has cut its scrap purchase prices by RMB 50/mt ($7.7/mt), signaling its bearish sentiment as regards the future prospects for the market and reflecting the gradual decline in scrap consumption. Accordingly, Shagang’s heavy scrap purchase price has come down to RMB 3,860/mt ($597/mt) delivered, including 13 percent VAT.
Previously on August 2, Shagang Group had kept its heavy scrap purchase prices stable.
Shagang has added a new scrap product, pure scrap 1 (leftover materials from new steel plate), with length not longer than 80 cm and thickness not less than 6 mm, for which its purchase price stands at RMB 3,970/mt.
The scrap price cut by Shagang signals its bearish view of the prospects for the scrap market amid slack demand during the traditional off-season.
$1 = RMB 6.4625