Shagang steel announced a price cut for ferrous scrap delivered to its Jiangsu mill in Zhangjiagang city.
The prices for #1 HMS and #3 HMS delivered to the Jiangsu mill in Zhangjiagang city, inclusive of 13pc tax are at CNY2,750/mt ($396/mt) and CNY2,670/mt, respectively, declining by CNY30/mt ($4.3/mt) from the prior prices.
The upcoming New Year holidays in China from Jan 24-30, 2020 and production cuts announced by the government in Tangshan and Hebei provinces compelled steel mills to halt their operations and avoid losses, a trader told Davis Index.
Decreased domestic consumption pressured Shagang’s ferrous scrap prices downward. Following Shagang steel, other major steelmakers in the eastern region lowered their ferrous scrap purchase prices by CNY30-50/mt this week.
Among other reasons, rising futures put an upward pressure on Chinese HRC export offers, and Shagang offered Chinese HRC at CNY505-510/mt fob Zhangjiagang for March shipment, with no takers at these levels, shared a source.