Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of November 17 it has trimmed its scrap purchase prices by another RMB 50/mt ($7.8/mt), showing its bearish sentiments of the future prospects for the market. Accordingly, Shagang’s heavy scrap purchase price has decreased to RMB 3,380/mt ($529/mt) delivered, including 13 percent VAT.
Previously on November 15, November 10, November 8 and November 5, Shagang Group has cut its heavy scrap purchase prices by RMB 50/mt ($7.8/mt), respectively.
The situation in the steel market in China has been still affected by reduced demand and weak outlook for prices by the rest of the year, which negatively affected the scrap prices. Moreover, in the north of China crude steel production restrictions have been resumed again for a short term, putting pressure on overall scrap prices in the domestic market in China.
$1 = RMB 6.3935