Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 31 it has cut its scrap purchase price by RMB 80/mt ($11.6/mt), reflecting the ongoing bearish sentiments towards the future prospects for the scrap market. Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has declined to RMB 3,140-3,200/mt ($456-464/mt) delivered, including 13 percent VAT.
It is noteworthy that this is the fourth successive price cut in a row. Previously, Shagang Group had cut its scrap purchase price by RMB 50/mt ($7.5/mt) three times, on August 19, August 20 and August 30, respectively.
During August 1-17, Shagang Group had raised its scrap purchase price by RMB 700/mt ($103/mt).
The latest move by Shagang indicates that the producer is cautious following the previous rises in scrap purchase prices.
$1 = RMB 6.8906