Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of May 20 it has cut its scrap purchase prices by RMB 100/mt ($15.5/mt), signaling its cautious sentiment as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,870/mt ($600.3/mt) delivered, including 13 percent VAT.
This is the third price cut following the previous decrease of RMB 80/mt ($12.4/mt) by Shagang Group on May 18.
This move by Shagang indicates its bearish view of the future prospects for the scrap market amid the decreasing trends in ferrous metal futures prices and local long steel prices.
As a result, import activity has been poor and the tradable value for ex-Japan HS scrap has slipped by $10/mt from yesterday to $500-520/mt CFR.
$1 = RMB 6.4464