China’s leading electric arc furnace (EAF) steelmaker, Jiangsu Shagang Group, trimmed its scrap purchase prices again towards the end of last week. Prices fell due to a drop in end-user demand for finished steel and a rise in scrap availability with the mill.
The steelmaker decreased scrap purchase prices by RMB 50/t($7/t) for all grades against the last revision on 19 August. After the final revision, HMS (6-10 mm) prices are at RMB 3,270/t ($480/t) delivered to headquarters, including 13% VAT, effective from 20 August.
Factors impacting prices
- Billet prices down: Steel billet prices in China’s Tangshan witnessed a fall of RMB 70/t ($10/t) to RMB 3,660/t ($536/t), inclusive of 13% VAT, on 19 August, as per data maintained with SteelMint.
- Rebar futures prices: China’s SHFE rebar futures contract for October delivery closed on 18 August at RMB 4,041/t ($595/t).
- Spot iron ore prices stable: Seaborne iron ore prices were largely stable on 19 August pressured by weak buying interest. The 62% Fe iron ore index stood at $99.7/t CFR North China.
- Imported scrap prices stable: Imported scrap prices are largely stable against the last closing. Prices of USA-origin shredded material stood at $434/t, while HMS prices were assessed at $414/t, both on a CFR basis.
Outlook
Scrap prices are expected to rebound as demand for finished steel might increase with the commencement of the construction season in China.
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