Jiangsu-based Shagang Group, China’s largest private steelmaker, has announced that as of August 30 it has cut its scrap purchase price by RMB 50/mt ($7.3/mt), reflecting continuous bearish sentiments towards the prospect for the future scrap market. Accordingly, Shagang’s heavy scrap (heavy I-III) purchase price has declined to RMB 3,220-3,280/mt ($468-477/mt) delivered, including 13 percent VAT.
Previously on August 19 and August 20, Shagang Group had cut its scrap purchase price by RMB 50/mt ($7.5/mt) for two times.
During August 1-17, Shagang Group had raised its scrap purchase price by RMB 700/mt ($103/mt).
However, Shagang Group decided to cut its scrap purchase price by RMB 50/mt on August 19, August 20 and August 30, respectively.
The latest move by Shagang signals that the producer has been bearish following previous rises in scrap purchase prices.
$1 = RMB 6.8802