Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has announced that as of September 20 this year it will cut its purchase prices for scrap by RMB 40/mt ($5.6/mt), which is expected to exert a negative impact on scrap prices in the Chinese domestic market.
Local scrap prices have been rising during the last few weeks. According to SteelOrbis’ data, average local prices have added RMB 28/mt ($4.5/mt) this week, but the trend is expected to be reversed.