Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of July 4 it has cut its scrap purchase price by RMB 50/mt ($7.5/mt), reflecting the prevailing bearish market sentiment. Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has decreased to RMB 3,350-3,410/mt ($500-509/mt) delivered, including 13 percent VAT.
Previously on June 23, Shagang Group had decreased its scrap purchase price by RMB 100/mt.
This latest move by Shagang signals its bearish view of the future prospects for the scrap market amid the weak demand in the offseason, production cuts by some mills, and small margins.
$1 = RMB 6.7071