China: Shagang Steel trims scrap buy prices by $7/t amid slow finished steel demand

China's leading electric arc furnace (EAF) steelmaker, Jiangsu Shagang Group, has trimmed its scrap buying prices for the first time this week. The steelmaker slashed scrap purchase prices by RMB 50/t ($7/t) for all grades against the last revision on 14 October. After the latest revision, HMS (6-10 mm) prices stand at RMB 2,910/t ($405/t) delivered to headquarters, including 13% VAT, effective from 18 October.

Shagang Steel has been lowering its scrap buy prices since two months due to subdued finished steel demand. Furthermore, there is uncertainty about the recovery in steel demand.

Current steel market scenario-

• Billet prices down: Steel billets prices in China's Tangshan stood at RMB 3,650/t ($507/t), falling by RMB 70/t w-o-w, inclusive of 13% VAT on 17 October, as per data maintained with SteelMint.
  
  
• Spot iron ore prices fall marginally: Seaborne iron ore prices fell on weak downstream steel demand. The 62% Fe iron ore index stood at $93.75/t CFR North China, down by $2.40/t d-o-d.
  
  
• Imported scrap prices down slightly: Prices of the US-origin HMS (bulk) material stood at $399/t, a fall of $5/t w-o-w.
  
  
• Rebar futures trend lower: China's SHFE rebars futures contract for January delivery closed at RMB 3,675/t ($511/t) on 17 October, a decrease of RMB 84/t ($12/t) as against the last closing.