On January 9, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 50/mt ($7/mt) decrease in its scrap purchase price, following a RMB 30/mt drop on January 7, reflecting the ongoing bearish sentiments as regards the future prospects for the scrap market. Since the beginning of this year, Shagang has cut its scrap purchase price by RMB 160/mt ($22/mt) cumulatively.
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have decreased to RMB 2,460/mt ($342/mt), RMB 2,430/m ($338/mt) and RMB 2,400/mt ($334/mt) delivered, including 13 percent VAT, respectively.
$1 = RMB 7.1891