Shagang cuts ferrous scrap buying prices by $4/t

Shagang Group (Shagang), the leading electric-arc-furnace (EAF) steel producer headquartered in East China's Jiangsu province, announced on Wednesday morning that it would reduce its steel scrap buying prices by Yuan 30/tonne ($4.2/t) for all grades with immediate effect. The move closely followed a Yuan 30/t price cut the steel major conducted on Saturday.

With the latest adjustment, Shagang is now paying scrap dealers Yuan 2,430-2,490/t for domestically produced HMS grade scrap, including the 13% VAT and delivery to its plants, according to the announcement. Shagang's further price cut on steel scrap buying prices in a way reflects mini-mills' intention to shave input costs,