China’s Jiangsu Shagang Steel enterprise lowered scrap buying price by CNY50/mt ($7.70/mt) for all grades, effective from today. This is the third scrap purchase price cut announcement in August, as per company officials.
Domestic scrap buying price for (HMS 6-10mm) dropped to CNY3730/mt ($574.36/mt). Other grades such as (HMS 10-20mm) and (less than and equal to 20mm) prices settled at CNY3760/mt ($578.98/mt), inclusive of 13pc VAT, delivered to headquarters at Zhangjiagang.
In the first half, the domestic scrap prices witnessed slight fluctuations in the market. In East China, Supply tightness is the major concern and mills have limited scrap volume. It is expected that in most of the regions domestic scrap procurement rate may be strong in the near term.
The spot price of iron ore Fe62pc fines fell by $6.45/mt on Aug 18 and settled at $153.05/mt CFR China on low buying interest from buyers. Market participants expected that the demand continued to be subdued in future amid prevailing bearish sentiments.
Chinese billet offers dropped by CNY60/mt ($9.24/mt) and cited at CNY4980/mt ($766.84/mt).
Finished Steel demand is sluggish which affects the construction activities and dampened the market sentiments.
($1=CNY6.50)