Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of November 19 it has trimmed its scrap purchase prices by RMB 80/mt ($12.5/mt), signaling its continued bearish sentiments as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,300/mt ($517/mt) delivered, including 13 percent VAT.
Previously on November 17, November 15, November 10, November 8 and November 5, Shagang Group had cut its heavy scrap purchase prices by RMB 50/mt ($7.8/mt), respectively.
Steel demand has continued to slow down, negatively affecting steel prices in the Chinese domestic market, while steel production restrictions are still in place, affecting sentiments in the scrap market.