China: Shagang Steel Cuts Scrap Purchase Price Further USD 4

Eastern China’s largest private ferrous scrap consumer and EAF steelmaker – Shagang Jiangsu Steel group has announced another price cut for all grades of domestic steel scrap procurement by RMB 30/MT (USD 4) effective from today 8th Aug’19. Notably, this is the second successive price lowering announced this week.

As per updates, Shagang steel is paying RMB 2,750/MT (USD 390) inclusive of 13% VAT for HMS 3 (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China, down RMB 30/MT against the last report of RMB 2,780/MT on 6th Aug’19. While HMS 1 (thickness not less than 20 mm) and HMS 2 (6-10 mm thickness) stand at RMB 2,830/MT and RMB 2,790/MT respectively.

After hitting decade’s high amid the trade war between US-China, Chinese currency Yuan (RMB) has settled down at around 7 levels against USD. Following the lead of the largest privately owned steel mill, many leading scrap consumers in the eastern region also stared cutting down their scrap purchase prices by RMB 30-50/MT in China.

China’s spot iron ore fines index fell sharply amid high supply and limited demand to USD 93/MT, lowering 18-19% from around USD 114-115/MT levels a week ago. While square billet (150-150 mm) prices reported at RMB 3,560/MT (USD 505) ex- Tangshan, including VAT.

Chinese steel scrap consumption reaches 101 MnT in H1 2019 - As per recent statistics released from CAMU, total steel scrap consumption recorded at 101.13 MnT, up 15.3% Y-o-Y during Jan-Jun’19. It is being analyzed that scrap consumption may exceed 200 MnT mark over the year 2019.