China’s Shagang Group has announced another reduction in the purchase price of scrap steel, marking a noticeable decline in Shagang’s scrap metal pricing. This downward trend has been observed in recent weeks.
Starting from Tuesday, the 4th, Shagang will lower the purchase price of scrap steel by 30 yuan (5,000 KRW) per ton across all grades. This follows a pattern of alternating price increases and decreases every 1-2 weeks since last month. Such frequent price fluctuations highlight the instability in China’s scrap steel market, driven by shifting supply and demand dynamics. The latest price adjustment reflects broader market trends and signals potential challenges ahead for steel producers and suppliers.
Previously, the company raised prices by 50 yuan per ton for all grades on the 8th of last month, only to lower them by 30 yuan on the 16th and then increase them again by 50 yuan on the 22nd. This cycle of price hikes and reductions suggests a highly reactive market responding to both domestic and international pressures. These fluctuations in Shagang’s scrap steel pricing have thus been a point of focus, not only for industry analysts but also for manufacturers relying on stable raw material costs.
As futures prices gradually decline amid concerns about slowing demand, major steelmakers, including Shagang, are raising product prices, reflecting extreme market volatility across China. Shagang scrap steel price decline is part of this market movement.
With this reduction, Shagang’s purchase price for the heavy scrap steel grade 101 (重废1) has been adjusted to 2,880 yuan (545,000 KRW) per ton. This Shagang scrap steel price decline impacts the steel industry significantly.
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