In a statement released Friday morning, Shagang Group revealed that it had once again lowered steel scrap purchase prices. With this latest reduction, there has been a decrease of 50 Yuan (7 $) per ton.
With this latest update, Shagang has now made a total of four reductions this month, bringing the total deduction amount to 200 Yuan/ton. Following the adjustments, the payment per delivery for locally sourced HMS quality scrap will range between 2.800-2.860 Yuan (389-397 $).
Shagang Group had previously lowered prices by 30 Yuan/ton on March 9, and then reduced scrap metal prices by an additional 30 Yuan/ton (4 $) per ton, effective from March 11, 2024, for all qualities of scrap metal. Finally, on March 12, prices were slashed by 70 Yuan/ton (9.9 $) per ton, effective immediately.
Situated in Jiangsu, Central East China, Shagang Group is the largest electric arc furnace (EAF) steel producer. The company is swiftly reducing steel scrap purchase prices in an effort to limit its costs.
These reductions are strategic moves aligned with the goal of reducing steel production costs. They reflect the overall downturn in the steel sector's prices and changes in economic conditions.
These developments in the steel sector highlight producers' efforts to control costs and the impact of market fluctuations on all industry players. Shagang's price cuts can be viewed as a reflection of the dynamics of competition and demand balance in the sector.
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