China's Shagang Steel 2nd Price Cut for Scrap Purchase in a Week's Time

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 50/MT (USD 7) effective from 30 Aug'19. Notably, this is steel mills' 2nd price cut in a week's time. Prior to this, the company had cut prices by RMB 60 two days back. Falling billet & steel prices resulted in lowering of scrap purchase prices.

As per updates, Shagang steel is now paying RMB 2,590/MT (USD 362) inclusive of 13% VAT for HMS 3 (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang north of Shanghai in China. While HMS 1 (thickness not less than 20 mm) and HMS 2 (6-10 mm thickness) stands at RMB 2,670/MT and RMB 2,630/MT respectively