On May 5, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced another decline in its scrap purchase price. This time, the company has cut its scrap purchase price by RMB 50/mt ($7.2/mt), reflecting ongoing bearish sentiments as regards the future prospects for the scrap market.
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have decreased to RMB 2,880/mt ($417/mt), RMB 2,850/m ($412/mt) and RMB 2,820/mt ($408/mt) delivered, including 13 percent VAT, respectively.
Rebar futures prices in China have indicated continuous decreases, exerting a negative impact on the scrap market.
$1 = RMB 6.9114