Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of November 10 it has trimmed its scrap purchase prices by another RMB 50/mt ($7.8/mt), signaling its bearish sentiments of the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,430/mt ($537/mt) delivered, including 13 percent VAT.
Previously on November 10, November 8 and November 5, Shagang Group has cut its heavy scrap purchase prices by also RMB 50/mt ($7.8/mt).
The ferrous metal futures prices have maintained a downward trend, negatively affecting steel prices in the Chinese domestic market, which weakened the support to scrap prices.