Eastern China’s largest EAF steelmaker- Shagang Steel – has decreased its domestic scrap purchase price by RMB 30/t ($4) for all grades. The price cut comes after a series of price hikes observed since mid-Jun’20.
The purchase price of HMS (6-10 mm) thickness has now been reduced to RMB 2,770/t ($405), inclusive of 13% VAT delivering to headquarters works at Zhangjiagang North of Shanghai in China.
While other grades including HMS (10-20 mm) thickness and HMS (not less than or equal to 20 mm) thickness stands at RMB 2,800/t ($410) and RMB 2,830/t ($414) respectively. The revised prices have come into effect from today (i.e. 14 Sept’20).
Domestic steel prices in China softened last week in tandem with slide-in futures. Chinese domestic billet prices settled with a sharp decrease of RMB 70 last week. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,420/t in Tangshan, inclusive of 13 % VAT. Thus, it seems in order to maintain the production cost according to softening steel prices, the company would have lowered the scrap purchase price.
Maintenance shutdown may lower scrap consumption – On the other hand planned maintenance shutdown at some of its works. Company plans to shut down 100 t electric furnace and 180 t converter for 12 days maintenance in early Sep’20, which would affect the total steel output of 42,000 t and 78,000 t respectively.
Shagang Steel has kept its prices of construction steel stable for mid-Sep’20 sales w.e.f 11 Sep’20. Price of rebar (HRB400, 16-25mm) stands at RMB 3,900/t, plain carbon wire rod (HPB300, 6-10mm) at RMB 4,060/t and coiled rebar (HRB400, 8-10mm) at RMB 4,100/t ex-mill.
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