Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of September 17 it has dropped its scrap purchase prices by RMB 70/mt ($10.9/mt), signaling its bearish sentiment as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has come down to RMB 3,770/mt ($584.5/mt) delivered, including 13 percent VAT. The decision was due to lower steel production amid the government’s call to cut energy consumption and emissions in September.
Previously on September 3, Shagang Group had raised its heavy scrap purchase prices by RMB 80/mt ($12.4/mt).
This move by Shagang signals its cautious view amid lower consumption, decreasing ferrous metal futures prices and declining iron ore prices.