The largest ferrous scrap consumer in China, Shagang Jiangsu Steel group has cut its scrap buying prices by Chinese Yuan 30/MT (USD 4.61) yesterday (i.e. 28th Dec). As per latest price update, Shagang is now paying CNY 2,650/MT (USD 407) inclusive of 17% VAT for Heavy Melting Scrap not lesser than 6 MM in thickness delivered to its works in Zhangjiagang Province in China.
Earlier to this, the company was fetching HMS scrap at CNY 2,680/MT (USD 412) including 17% VAT as per revision on 22nd Dec’17.This is first price drop company has witnessed since mid of the October month.
In Dec’17, Shagang Steel had hiked scrap buying prices successively three times on 3rd, 15th and 22nd Dec’17 by CNY 150/MT, CNY 200/MT and CNY 200/MT respectively. Thus the total rise of CNY 550/MT had noted in scrap buying prices in parallel with continuously rising Rebar prices by Shagang group earlier to latest price update.
Shagang steel has an annual production capacity of 31.9 MnT iron, 39.2 MnT steel and 37.2 MnT rolled products. It manufactures leading steel products like wide heavy plate, hot-rolled strip coil, high-speed wire rod, large bundle of wire rod, ribbed steel bar, special steel round bar along with 60 series and more than 700 varieties with nearly 2000 specifications.
Following Shagang’s price cut, few other major mills in eastern China including Changiiang Steel and Maanshan Steel cut their scrap buying prices by CNY 30-60/MT.
Chinese domestic rebar prices decline this week – Chinese domestic rebar prices fell recently by around CNY 80-100/MT(USD 12-15) resulting in the total fall of around CNY 250/MT(USD 38) on W-o-W basis. Domestic rebar prices in eastern China assessed at CNY 4,250-4,300/MT (ex-works). Several construction projects in China have been halted due to New Year holidays and extreme weather conditions.
Leave a Reply