Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of November 5 it has cut its scrap purchase price by RMB 50/mt ($7.8/mt), signaling its still bearish sentiment as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,580/mt ($559.4/mt) delivered, including 13 percent VAT.
Previously on November 3, Shagang Group had cut its heavy scrap purchase price by RMB 80/mt ($12.5/mt).
The rapid scrap purchase price cuts made by Shagang Group reflect its reduced steel production and the ongoing bearishness of the outlook for steel prices in China.
$1 = RMB 6.398