Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of November 10 it has cut its scrap purchase prices by another RMB 50/mt ($7.8/mt), signaling its bearish sentiments as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,480/mt ($544/mt) delivered, including 13 percent VAT.
Previously, on November 8 and November 5, Shagang Group cut its heavy scrap purchase prices by RMB 50/mt ($7.8/mt), respectively.
Ferrous metal futures prices have indicated big declines, exerting a negative impact on steel prices in the Chinese domestic market and weakening support for scrap prices.
$1 = RMB 6.3948