China’s leading electric arc furnace (EAF) steelmaker, Jiangsu Shagang Group, trimmed its scrap purchase prices for the first time this week. Prices fell due to uncertain economic performance and modest demand for finished products. Mills are having sufficient scrap stock maintained with them, as per sources.
The steelmaker slashed scrap purchase prices by RMB 50/t($7/t) for all grades against the last revision on 20 August. After the final revision, HMS (6-10 mm) prices are at RMB 3,220/t ($466/t) delivered to headquarters, including 13% VAT, effective from 30 August.
Factors impacting prices-
Factors impacting prices-
- Billet prices down: Steel billet prices in China’s Tangshan fell by RMB 50/t ($7/t) w-o-w to RMB 3,740/t ($541/t), inclusive of 13% VAT, on 29 August, as per data maintained with SteelMint.
- Rebar futures slide: China’s SHFE rebar futures contract for October delivery closed on 29 August at RMB 3,965/t ($574/t), a fall of RMB 76/t ($11/t) as against a week.
- Spot iron ore prices edge down: Seaborne iron ore prices were down on 29 August as the downstream steel demand is yet to improve. The 62% Fe iron ore index stood at $101.75/t CFR North China.
- Imported scrap prices dip: Prices of Japan-origin H2 material stood at $390/t, a marginal fall of $2/t w-o-w. However, imported scrap prices are stable against the last closing.
Outlook
Demand for finished steel products may remain subdued and scrap prices are unlikely to see a significant upside or downside correction in the near term. In addition, prices of domestic scrap are expected to be range bound.
Demand for finished steel products may remain subdued and scrap prices are unlikely to see a significant upside or downside correction in the near term. In addition, prices of domestic scrap are expected to be range bound.
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