Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 10 it has cut its scrap purchase prices by RMB 50/mt ($7.7/mt), signaling its bearish sentiment as regards the market prospects. Accordingly, Shagang’s heavy scrap purchase price has come down to RMB 3,810/mt ($588/mt) delivered, including 13 percent VAT.
Previously on August 6, Shagang Group had cut its heavy scrap purchase prices by RMB 50/mt ($7.7/mt).
This move by Shagang signals its bearish sentiment amid declining steel prices in the Chinese domestic market and lower consumption of scrap among Chinese steelmakers.