Eastern China’s largest ferrous scrap consumer and EAF steelmaker – Shagang Jiangsu Steel group has lowered steel scrap purchase prices by RMB 30/MT (USD 4) effective from yesterday. After witnessing two price hikes by a total RMB 180/MT earlier in December, the company has lowered scrap prices amid falling finish long prices and bearish sentiments in the domestic market.
Consequently, Shagang Steel is paying RMB 2,570/MT (USD 374) inclusive of 16% VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang province in China, down RMB 30/MT as against the last report of RMB 2,600/MT on 19th Dec’18.
The prices for other grades of scrap also have moved up by around RMB 30/MT in this revision. Shagang is paying RMB 2,670/MT (USD 389) for HMS (thickness not less than 20 mm) while around RMB 2,470/MT for medium sized scrap (thickness 4-6 mm). New prices stand at around RMB 2,690/MT for charging scrap 1 and RMB 2,620/MT for HMS (thickness not less than 10 mm) inclusive of 16% VAT.
Following Shagang’s lead, other leading scrap consumers like Maanshan steel, Nanjing Steel, Zenith Steel lowered scrap purchase prices by RMB 30-50/MT in eastern China.
Shagang Steel slashed finish long prices for late-December shipment – The mill is selling its HRB400 16-25 mm dia rebar at RMB 4,020/MT (USD 586) over the December 21-30 period, down RMB 80/MT (USD 12) against the last set of prices for mid-Dec’18 shipments. While that for HPB300 6.5 mm dia wire rod holds at RMB 4,080/MT (USD 594) over the same period. While HRB 400 8-10 mm dia bar-in-coil fetches RMB 4,150/MT, all prices are on an ex-works basis, including 16% VAT.
China’s scrap consumption up 38% in Jan-Oct’18 – As per recent reports by Xinhua news, China’s ferrous scrap consumption recorded at 157 MnT during Jan-Oct’18, witnessing a rise of around 37.8% Y-o-Y as against 114 MnT during the same period last year. Over these ten months, average steel scrap consumption ratio in steelmaking has exceeded 20% across China.
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