China: Shagang Steel Cuts Scrap Purchase Price by USD 6

Eastern China’s largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has slashed its price for procurement all grades of domestic steel scrap by RMB 40/MT (USD 6) effective from today 20th September’19.

As per updates, after the price cut Shagang Steel is now paying RMB 2,690/MT (USD 380) 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 40/MT against the last report of RMB 2,730/MT on 10 Sept'19. While HMS 1 (thickness not less than 20 mm) and HMS 2 (6-10 mm thickness) stand at RMB 2,770/MT (USD 391) and RMB 2,730/MT (USD 385) respectively.

Notably, this price cut comes after 2 successive price hikes from the company when tight supply of Scrap had resulted in a total hike by RMB 140/MT since Sep’19. Softening in domestic Billet and Rebar prices recently could have led to drop in domestic scrap prices.