Following weakening finish steel prices, Chinese steelmakers have cut domestic scrap prices twice in the last couple of days.
One of the largest ferrous scrap consumers in China, Shagang Jiangsu Steel group has reduced its scrap buying price by Chinese Yuan 30/MT (USD 5) recently. As per latest price updates received, Shagang is now paying RMB 2,490/MT (USD 394) inclusive of 17% VAT for heavy melting scrap not lesser than 6 mm in thickness delivered to its headquarter works in Zhangjiagang Province in China.
In the latest price revision, Shagang Steel also cut purchase prices for other grades of scrap by RMB 30/MT (USD 5). Shagang is now paying RMB 2570/MT (USD 407) for premium grade HMS 1 scrap not lesser than 20 mm in thickness. While prices are at RMB 2390/MT (USD 379) and RMB 2260/MT (USD 359) for scrap with specification 4-6 mm and 2-4 mm thickness respectively.
Earlier to this in the beginning of the week, Shagang reduced scrap purchase prices by RMB 30 (USD 5), however, over the weakening of Chinese finish steel demand and falling prices, Shagang further reduced scrap purchase prices by RMB 30 (USD 5). Notably, this is second price drop the company witnessed in a couple of days.
Shagang Steel is one of the leading steelmakers in China and has an annual production capacity of 31.9 MnT iron, 39.2 MnT steel and 37.2 MnT rolled products.
Few other major mills in eastern China like Nanjing Steel, Maanshan Steel and Xingcheng Steel have also reduced their scrap buying prices following Shagang’s price fall. For major provinces in China like Guangdong, Shandong and Anhui domestic scrap buying prices have decreased by upto RMB 50/MT, RMB 40/MT and RMB 30/MT respectively.
Currently, Chinese HRC price assessment is in the range of USD 590-615/MT, FoB China. Last week the offers were in the range of USD 620-625/MT, FoB basis.
Last week few Chinese steelmakers heard to have booked two bulk scrap vessels from USA based suppliers at around USD 405-407/MT, CFR China levels.
Leave a Reply