On November 4, Jiangsu-based Shagang Group, China's largest private steelmaker, announced a RMB 30/mt ($4.5/mt) reduction in its scrap purchase prices, following a RMB 50/mt drop on July 4, reflecting continuing 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 2,450/mt ($365/mt), RMB 2,420/m ($360/mt) and RMB 2,390/mt ($356/mt) delivered, including 13 percent VAT, respectively.
The ongoing poor performance of the finished steel market due to demand falling short of expectations in September and October has exerted a negative impact on the scrap market. Meanwhile, as temperatures start to drop, steel demand is expected to weaken further, which will continue to exert a negative impact on the scrap market.
