Following four successive price cuts in a row, on September 22 Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a further reduction in its scrap purchase price. This time the company has cut its scrap purchase price by RMB 80/mt ($11.6/mt), reflecting 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.
Earlier, on August 31 Shagang Group had cut its scrap purchase price by RMB 80/mt ($11.6/mt), following three previous declines of RMB 50/mt ($7.5/mt).