Eastern China’s largest EAF steelmaker- Shagang Steel – has announced its second price cut in a span of just two days for all the grades of domestic steel scrap procurement by RMB 30/t ($4), effective from today, 16th Sep’20.
The purchase price of HMS (6-10 mm) thickness has declined to RMB 2,740/t ($405), inclusive of 13% VAT delivering to headquarters works at Zhangjiagang North of Shanghai in China. Notably, the purchase prices are on a similar level on 11th Nov’19.
While other grades including HMS (10-20 mm) thickness stands at RMB 2,770/t ($409) and HMS (not less than or equal to 20 mm) thickness stands at RMB 2,800/t ($413).
Reasons behind decline in Chinese domestic scrap prices –
- Scrap suppliers are worried about the price trend, so they are active for shipment resulting in continued decline in scrap price.
- Raw material availability in scrap processing yards has improved therefore, scrap suppliers are taking an approach to wait-and-see the market.
- Finished steel and semi-finished market weakend further, as downstream users slowed their pace of buying after falling prices in the futures market. Chinese domestic billet prices in the Tangshan market further slips by RMB 30, against yesterday. The billet transactions were moderate on sluggish finished steel demand. The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 3,390/t ($501/t) in Tangshan, inclusive of 13 % VAT.
- Slow production and scrap arrival to processing plants have significantly increased. Some steel mills have lowered the procurement price.
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