China: Shagang Steel Cuts Scrap Purchase Price USD 7

Shagang steel made 4th successive price cut for scrap purchase by another RMB 50/MT today, witnessing a total price drop by RMB 160/MT (USD 23) after hitting years' high on 30th July amid falling billet & finish long prices.

Eastern China's largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has announced price cut for all grades of domestic steel scrap procurement by RMB 50/MT (USD 7) effective from today. Notably, after Saturday's price cut, this is the fourth successive price cut announced on weakening domestic billet & rebar prices in China amid trade strains with US.

As per updates, Shagang steel is paying RMB 2,650/MT (USD 375) 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 50/MT against the last report of RMB 2,700/MT on 10th Aug'19. While HMS 1 (thickness not less than 20 mm) and HMS 2 (6-10 mm thickness) stand at RMB 2,730/MT and RMB 2,690/MT respectively.

Chinese currency Yuan (RMB) has remained above 7.05 levels of decades' high against USD since last couple of days. USD/CNY exchange rate stands at 7.06 today.

Shagang Steel cuts long steel prices for mid-August shipments - The mill is selling its HRB400 16-25mm rebar at RMB 3,970/MT (USD 562) over the August 11-20 period, down RMB 200/MT (USD 28) from its last set of offers.