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

Eastern China's largest private ferrous scrap consumer and EAF steelmaker- Shagang Jiangsu Steel group has announced another price cut for scrap procurement. The company has further lowered its purchase price by RMB 50/MT (USD 7) for all major grades of domestic scrap, effective from today, 1st April'20. This is the lowest scrap purchase price in 1.5 years, as prior to this, the lowest level was registered in Nov'18 at RMB 2420/MT.

After the said price cut, Shagang Steel will now pay RMB 2,430/MT (USD 342) 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 2,480/MT on 30th Mar'20.

While other higher grades including HMS (thickness not less than 20 mm) and HMS (10-20 mm thickness) stand at RMB 2,510/MT (USD 354) and RMB 2,470/MT (USD 349) respectively.

Domestic scrap purchase price has continued to fall since the last two weeks after the country has been getting recovery from the global pandemic Coronavirus outbreak. Chinese steelmakers are now active in the market, which was also noticed in the aggressive buying of Billets from overseas markets at prevailing cheap rates. The market expects the domestic scrap purchase prices may fall further in the near term.