Posted on 29 May 2023
Shagang Group (Shagang), China's leading electric-arc-furnace steelmaker, has trimmed its steel scrap procurement prices by Yuan 50/tonne ($7.1/t) effective from May 25, mainly in response to the persistent weakening in finished steel prices and negative sentiment pervading the market.
After the price adjustment, Shagang now is paying Yuan 2,750-2,810/t for domestically-sourced HMS grade scrap in terms of delivery to the mill and including the 13% VAT.
As expected, Shagang's announcement quickly impacted spot scrap prices in East China's Zhangjiagang where the steel giant is headquartered, with the local price of 6-8mm common-grade carbon steel scrap moving down by Yuan 50/t on day to Yuan 2,400/t and excluding the 13% VAT as of May 25.
Meanwhile, scrap deliveries to Shagang's Zhangjiagang plant totaled 12,004 tonnes/day as of Wednesday, up 26.3% on day, according to Mysteel's daily tracking.
On the same day, China's national price of HRB400E 20mm dia rebar under Mysteel's assessment fell Yuan 37/t on day or Yuan 140/t on week to hit a three-year low of Yuan 3,698/t and including the 13% VAT.
Source:Mysteel Global
