Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of July 16 it has cut its scrap purchase price by RMB 100/mt ($15/mt), reflecting the prevailing bearish market sentiment. Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has decreased to RMB 2,670-2,730/mt ($396-405/mt) delivered, including 13 percent VAT.
Previously, on July 15, Shagang Group had decreased its scrap purchase price by RMB 150/mt ($22/mt).
Since July 4 this year, Shagang Group has cut its scrap purchase price by a total of RMB 730/mt ($108/mt).
This latest move by Shagang indicates its continued bearish view of the future prospects for the scrap market amid slack demand from steelmakers during the hot summer in China and the continuing sharp declines in spot and futures steel prices.
$1 = RMB 6.7447