Accordingly, Shagang’s heavy scrap purchase price has softened to RMB 3,760/mt ($579/mt) delivered, including 13 percent VAT.
Previously on August 10, Shagang Group had cut its heavy scrap purchase prices also by RMB 50/mt.
This move by Shagang signals its bearish view as regards the prospects for the scrap market amid declining iron ore prices and the shrinking price gap between iron ore and scrap, while steel production in China has been reduced.