China: Shagang Steel Observes 2nd Scrap Purchase Price Cut In a Week's Time

Eastern China's largest private ferrous scrap consumer and EAF steelmaker - Shagang Jiangsu Steel group has announced its 2nd price lowering in a week, cutting down its bids by RMB 30/MT (USD 4) for all grades of domestic steel scrap procurement, with the new prices effective from today, 29th Nov'19.

As per updates, Shagang Steel is paying RMB 2,730/MT (USD 388) 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 30/MT(USD 4) against the last report of RMB 2,760/MT (USD 392) on 27th Nov'19. While other higher grades including HMS (thickness not less than 20 mm) and HMS (10-20 mm thickness) stands at RMB 2,810/MT (USD 399) and RMB 2,770/MT (USD 394) respectively.

Recent decline in billet prices could be the reason behind reduction in scrap bids. As the domestic scrap market remained sideways in Nov'19, the company has observed as many as 6 price revisions in the month, amid the volatile domestic steel market, including 4 price cuts, separated by 2 price hikes between them, as per the data maintained by SteelMint.