Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of May 21 it has cut its scrap purchase prices by RMB 100/mt ($15.5/mt), signaling its bearish sentiment as regards the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,770/mt ($585/mt) delivered, including 13 percent VAT.
This is the fourth price cut and follows the previous decrease of RMB 100/mt ($15.5/mt) by Shagang Group on May 20.
This move by Shagang signals its bearish view of the prospects for the scrap market amid the continuing declining trends in ferrous metal futures prices and local steel prices.