Shagang Steel has made third successive price cut for purchase of domestic scrap in line with reducing finish long prices by USD 32/MT for late March, in last seven days’ time.
One of the largest ferrous scrap consumers in China, Shagang Jiangsu Steel group has reduced its scrap buying prices further by Chinese Yuan 30/MT (USD 5). As per latest price updates received, Shagang is now paying RMB 2,400/MT (USD 380) inclusive of 17% VAT for heavy melting scrap not lesser than 6 mm in thickness delivered to its headquarter works in Zhangjiagang Province in China.
Shagang Steel also cut purchase prices for other grades of scrap by RMB 30/MT (USD 5) in latest price revision. Shagang is now paying RMB 2480/MT (USD 492) for premium grade HMS 1 scrap not lesser than 20 mm in thickness. While prices noted at RMB 2300/MT (USD 364) and RMB 2170/MT (USD 343) for scrap with specification 4-6 mm and 2-4 mm thickness respectively.
Shagang scrap purchase prices (6mm-10mm) had reached the peak at RMB 2550/MT on 6th March. After which scrap prices in China have followed a downward movement. Shagang has recorded its fifth consecutive price cut through which scrap prices have dropped by total RMB 150 (USD 24) now, over the weakening of Chinese finish steel demand and ample scrap inventories in hand, the major steelmakers in China have cut scrap prices steadily.
Shagang Steel is one of the leading steelmakers in China and has an annual production capacity of 31.9 MnT iron, 39.2 MnT steel and 37.2 MnT rolled products.
Few other major mills in eastern China like Nanjing Steel, Maanshan Steel and Xuancheng Steel have also reduced their scrap buying prices following Shagang’s price fall. For major provinces in eastern China like Fujian, Anhui and Zhejiang domestic scrap buying prices have decreased by upto RMB 70/MT, RMB 30/MT and RMB 30/MT respectively.
Shagang Steel slashed its long steel prices for late March shipments –
Amid weakening of Chinese spot market, Shagang recently reduced its finish long steel prices by RMB 200/MT (USD 32) for shipments in late March, as compared to its earlier set prices.
As per sources, the steel mill is offering its HRB400 16-25 mm rebar at RMB 4100/MT (USD 648) and HPB300 wire rod at RMB 4030/MT (USD 637) on ex-works basis including VAT over the period 21-31st Mar’18.
Weak Chinese finish steel prices and increasing inventories –
Chinese finish steel demand remains weak again this week. Chinas’ reference index for rebar export offers declined by USD 10/MT W-o-W to USD 558/MT, FoB. However, rebar and wire rod inventories with Chinese major steel mills are increasing sharply creating a matter of concern for most of the steel mills.
HRC export offers from China have also declined this week on dull domestic sentiments. HRC export offers assessed in the range of USD 590-610/MT, FoB China while domestic prices gauged at RMB 3,900-3,930/MT (ex-works) in eastern China.
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