Shagang Group (Shagang), China's leading electric arc furnace steelmaker, reduced its scrap purchase prices by 50 yuan/tonne ($7.06), effective 25 May, due to the ongoing decrease in finished steel prices and unfavourable market sentiment.
Following the price adjustment, Shagang is now paying 2,750-2,810 Yuan/t ($388.54-397.02) for HMS grade scrap, including delivery to the mill and 13% VAT.
Shagang's price announcement quickly affected spot scrap prices in Zhangjiagang in eastern China, where the steel giant is headquartered, with the local price of 6-8 mm crude carbon steel scrap decreasing by 50 Yuan/t per day to 2,400 Yuan/t ($339.09) excluding 13% VAT as of 25 May.
China's local HRB400E 20mm diameter rebar HRB400E price decreased by 37 Yuan/t ($5.23) per day or 140 Yuan/t ($19.78) per week to a three-year low of 3,698 Yuan/t ($522.48) including 13% VAT.
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