China’s leading electric arc furnace (EAF) steelmaker, Jiangsu Shagang Group, has again slashed its scrap buying prices today. The steelmaker cut prices by RMB 50/t ($7/t) for all grades against the last revision on 20 October. After the latest revision, HMS (6-10 mm) prices stand at RMB 2,810 /t ($388/t) delivered to headquarters, including 13% VAT, effective from 22 October.
The company has cut its scrap purchase prices by a total of RMB 150/t ($21/t) between 18-21 October in three times. So far, the company has announced six price cuts in October month.
Current steel market scenario-
- Billet prices down: Steel billets prices in China’s Tangshan stood at RMB 3,620/t ($499/t), falling by RMB 30/t w-o-w, inclusive of 13% VAT on 20 October, as per data maintained with SteelMint.
- Spot iron ore prices fall marginally: Seaborne iron ore prices continued to fall due to weak seaborne liquidity and decreasing steel margins. The 62% Fe iron ore index stood at $91.40/t CFR North China, down by $2.35/t d-o-d on 20 October.
- Imported scrap prices down w-o-w: Prices of the US-origin HMS (bulk) material stood at $389/t, a fall of $15/t w-o-w.
- Rebar futures down d-o-d: China’s SHFE rebars futures contract for January 2023 delivery closed at RMB 3,594/t ($496/t) on 20 October, a decline of RMB 53/t ($7/t) as against the last closing.
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