China: Shagang Steel Cuts Scrap Purchase Price by Another RMB 50 (USD 7)

Eastern China's largest private ferrous scrap consumer and EAF steelmaker- Shagang Jiangsu Steel group has again lowered its domestic price for scrap procurement today, now twice in just two days. The company has today lowered its purchase price by RMB 50/MT (USD 7) effective from today, 8th Apr'20.

The company has lowered its purchase price by RMB 50/MT (USD 7) to 2200/MT (USD 311) for HMS (6-10 mm thickness), inclusive of 13% VAT, delivering to headquarters works situated in Zhangjiagang north of Shanghai in China, in comparison with the last price revision to RMB 2250/MT yesterday on 7th April'20.

On the other hand, other higher grades including HMS (thickness not less than 20 mm) and HMS (10-20 mm thickness) stand at RMB 2,280/MT (USD 323) and RMB 2,240/MT (USD 317) respectively.

In the first half of the week, domestic scrap prices continued to decline, whereas finished steel products are still weak in the market.

The scrap purchase price has been reduced by RMB 180/MT during and after the Chinese Qingming festival from 4th to 6th April'20. This is the lowest scrap purchase price since Mar'18 when it was recorded at the same level RMB 2200/MT. Decreased steel sales and high scrap inventories with steel mills have also contributed in pulling the scrap prices down recently.