China: Shagang Steel Announces 3rd Price Cut for Scrap Purchase in a Week

Eastern China's largest private ferrous scrap consumer and EAF steelmaker- Shagang Jiangsu Steel group has further lowered its domestic price for scrap procurement. This is the fourth successive price cut made by the company in March'20 and third in a span of seven days.

The company has lowered its purchase price by RMB 50/MT (USD 7) for all major grades of domestic scrap, effective from today, 30th March'20.

After the said price cut, Shagang Steel will now pay RMB 2,480/MT (USD 350) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China, down by RMB 50/MT (USD 7) against the last revision to RMB 2,530/MT on 26th Mar'20.

While other higher grades including HMS (thickness not less than 20 mm) and HMS (10-20 mm thickness) stand at RMB 2,560/MT (USD 361) and RMB 2,520/MT (USD 355) respectively.

With this the total price cut of RMB 80 /MT by the company in seven days, this is the lowest price level since Nov'18. The total scrap import volume by Jiangsu steel was reported at an average of 25,000 MT in a week with an inventory of around 350,000 MT.