On August 19, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 30/mt ($4.2/mt) cut in its scrap purchase price, following a RMB 50/mt hike on July 26, signaling bearish sentiments as regards the future prospects for the scrap market.
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have increased to RMB 2,520/mt ($353/mt), RMB 2,490/m ($349/mt) and RMB 2,460/mt ($345/mt) delivered, including 13 percent VAT, respectively.
In the traditional off-season, demand for steel has been sluggish, resulting in increasing inventory levels and weaking the support for overall ferrous metal prices.