Eastern China’s Shagang group – has reduced its domestic scrap purchase price for the fourth time in Sep’20. Today the company has announced a price cut by RMB 50/t ($7) for all grades, effective from today (25th Sep’20).
The purchase price of HMS (6-10 mm) thickness has declined to RMB 2,640/t ($387), inclusive of 13% VAT delivering to headquarters works at Zhangjiagang North of Shanghai in China. While the price of other grades including HMS (10-20 mm) thickness stands at RMB 2,670/t ($391) and HMS (not less than or equal to 20 mm) thickness stands at RMB 2,700/t ($396).
Notably, Shagang has cut scrap bids by RMB 160/t ($23) since the beginning of Sept’20. Steep decline in Chinese domestic steel prices amid plunge in futures and weaker steel demand outlook, lowered scrap prices. Chinese domestic billet prices have weakened by RMB 40 ($6) w-o-w. In addition to it, other key raw material – iron ore has also witnessed a significant price decline of $9 w-o-w.
September continues to look bearish for steel prices as mill rebar inventories were heard on the higher side, as per market sources. After this round of price decline, it is expected that the price decline of scrap may slow down before the upcoming Chinese holidays which are scheduled in 1st week of Oct’20.
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