On September 2, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 50/mt ($7/mt) cut in its scrap purchase price, following a RMB 30/mt drop on August 19, 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 decreased to RMB 2,470/mt ($348/mt), RMB 2,440/m ($344/mt) and RMB 2,410/mt ($339/mt) delivered, including 13 percent VAT, respectively.
The demand for scrap has been quiet, exerting a negative impact on its prices.