Jiangsu-basedShagangGroup,China’s largest private steelmaker, has announced that as of October 18 it has cut itsscrappurchase price further by RMB 50/mt ($7.0/mt), in the third successive price cut in October, reflecting bearish sentiments in thescrapmarket amid sluggish demand for finished steel. Accordingly,Shagang’s heavyscrap(heavy I-III) purchase price has declined to RMB 2,960-3,020/mt ($417-425/mt) delivered, including 13 percent VAT.
In October the company has cut itsscrappurchase prices by a total of RMB 180/mt ($25/mt).
The latest move byShagangsignals that the producer remains bearish as regards the future prospects for thescrapmarket.
$1 = RMB 7.1086