On May 12, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced another decline in its scrap purchase price. This time, the company has cut its scrap purchase price by RMB 50/mt ($7.2/mt), reflecting continuing cautious sentiments as regards the future prospects for the scrap market.
Accordingly, Shagang’s purchase prices for heavy melting scrap, HMS 1, 2 and 3 grades, have decreased to RMB 2,830/mt ($407/mt), RMB 2,800/m ($403/mt) and RMB 2,770/mt ($399/mt) delivered, including 13 percent VAT, respectively.
Rebar futures prices in China have moved down again following the rebound seen after the Labor Day holiday, exerting a negative impact on the scrap market.
$1 = RMB 6.9481