Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of October 28 it has trimmed its scrap purchase price by RMB 80/mt ($12.5/mt), signaling its bearish sentiment as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,710/mt ($581/mt) delivered, including 13 percent VAT.
Previously, on October 26, Shagang Group had cut its heavy scrap purchase price by RMB 50/mt ($7.8/mt).
Recently, steel prices have moved on an overall downtrend in China amid the sharp decreases in ferrous metal futures prices, and so steelmakers have been seeking to reduce their scrap purchase prices, aiming to lower their production costs.
$1 = RMB 6.3957