China’s Shagang Steel Further Cuts Scrap Purchase Prices by USD 8/MT

Owing to steep fall in domestic steel prices, in last 21 days the steel maker has slashed scrap purchase prices by USD 56/MT.

After yesterday’s decline in domestic scrap purchase price of USD 24/MT, the steel maker has further cut scrap purchase prices today by USD 8/MT.

Steelmills in China slashed domestic scrap purchase prices following slump in domestic steel prices. Yesterday domestic rebar prices in China fell by RMB 80-90/MT against last week’s closing.

One of the largest ferrous scrap consumers in China, Shagang Jiangsu Steel group has slashed its scrap purchase prices further by Chinese Yuan 50/MT (USD 8). As per latest price updates received, Shagang is now paying RMB 2,200/MT (USD 351) inclusive of 17% VAT for HMS not lesser than 6 mm in thickness delivered to its headquarter works in Zhangjiagang Province in China.

Shagang is now paying RMB 2280/MT (USD 364) for premium grade HMS 1 scrap not lesser than 20 mm in thickness. While prices noted at RMB 2100/MT (USD 335) and RMB 1970/MT (USD 315) 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 prices observed a downtrend. In last 21 days, the steel maker has reduced domestic scrap purchase prices by RMB 350/MT (USD 56).

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.