Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 20 it has cut its scrap purchase price by RMB 50/mt ($7.4/mt). The second consecutive decrease of prices reflects continuous bearish sentiments of the steelmaker towards the future prospects for the scrap market. Accordingly, following the revision, Shagang’s heavy scrap (heavy I-III) purchase price has declined to RMB 3,270-3,330/mt ($479.5-488/mt) delivered, including 13 percent VAT.
As SteelOrbis has reported earlier, during August 1-17, Shagang Group had raised its scrap purchase price by RMB 700/mt ($103/mt).
The latest move by Shagang signals that the producer has been cautious following the previous significant rises in scrap purchase prices.
$1 = RMB 6.8198