Eastern China’s largest private ferrous scrap consumer and EAF steelmaker – Shagang Jiangsu Steel group has lowered steel scrap purchase prices further for all grades by RMB 40/MT (USD 6) effective from today (1st Apr’19). Notably, this is the second successive price cut the company has observed in the last one week’s time.
As per updates, Shagang Steel is paying RMB 2,540/MT (USD 379) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China, down RMB 40/MT against the last report of RMB 2,580/MT on 28th Mar’19.
Prior to this, in the last price revision made on 28th Mar’19, the company lowered scrap prices by RMB 40/MT (USD 6) following uncertainty in China’s finish steel market and due to cost control thus, Chinese scrap prices which were relatively high might have been observing successive fall, a trade source shared.
Notably, Chinese steel manufacturers were paying 16% VAT which has now been lowered to 13% effective from today by the Chinese government which may aid steel mills in overall input cost for steelmaking. The same for transportation and construction sectors has been lowered to 9% from 10% earlier. The average price of steel products may correct as the benefit of lowering of tax to be passed down to the end products of the steel sector. Steelmakers may invest this profit in Technology to improve the quality of products.
Following the largest privately owned steel mill’s lead, many leading scrap consumers in eastern regions Maanshan, Handan, Shanghai and Taizhou have lowered scrap purchase prices by RMB 40-60/MT recently in China.
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