Ferrous scrap prices surge to 7-month highs in Eastern China

BEIJING (Scrap Monster):  The steel mills in Eastern China region have announced further hike in scrap purchasing prices, mainly on account of rising domestic rebar prices. The scrap prices in the region have now hit highest level in over seven months.

Jiangsu Shagang Group announced a hike of Yuan 50 per mt in scrap buying prices Wednesday. Post hike, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,360 per mt, inclusive of 17% VAT delivered to Zhangjiagang.

Yonggang Group in the same province also increased the scrap purchasing prices by Yuan 30 per mt delivered to Zhangjiagang, Jiangsu province. After increase, the scrap buying prices of heavy melting scrap at least 8 mm thickness now stands at Yuan 1,420/mt.

Meantime, Zenith Steel too raised the buying price of heavy melting scrap at least 6 mm thick by Yuan 50 during the week. The buying price currently stands at Yuan 1,300/mt, including VAT, delivered to Changzhou.

Also, Maanshan Iron & Steel announced a hike of Yuan 50 per mt on scrap buying prices during the week. After the announcement of price increase, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,410 per mt, inclusive of VAT for deliveries to Maanshan in Anhui province.

Traders in the region expect some stability in scrap prices going ahead. According to them, scrap prices are unlikely to see major correction in the near future.