Shagang cuts scrap price by $12.4/mt amid cautious sentiments
Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of May 18 it has cut its scrap purchase prices by RMB 80/mt ($12.4/mt), signaling its cautious sentiments of the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,970/mt ($617/mt) delivered, including 13 percent VAT.
This is the second price cut following the previous decrease by Shagang Group on May 16.
This move by Shagang signals the bearish market conditions amid the declining trend in ferrous metal futures prices and high volatility of steel prices.