Steel mills in Eastern China slash ferrous scrap buying prices

The decline in domestic rebar prices and seaborne iron ore prices have led to further drop in scrap buying prices by steel mills in Eastern China region. According to the mills, scrap purchasing prices are likely to witness further weakness in the immediate near term. It must be noted that rebar and iron ore prices had recently witnessed sharp rallies.

Jiangsu Shagang Group has announced a cut of Yuan 20 per mt in scrap buying prices on Monday. Post cut, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group will be Yuan 1,240 per mt, inclusive of VAT delivered to Zhangjiagang. The mill had increased the scrap buying price by Yuan 200 per mt during the week prior to this.

Yonggang Group in the same province also lowered the scrap purchasing prices of heavy melting scrap 8mm and above by Yuan 20 per mt delivered to Zhangjiagang. Post reduction, the scrap purchasing prices were at Yuan 1,300/mt, including VAT, delivered to Zhangjiagang.

Zenith Steel too announced that purchasing price of heavy melting scrap of thickness 6 mm and above for deliveries to Changzhou will be reduced by Yuan 20 per mt. After price cut, the scrap purchasing prices will be Yuan 1,200/mt, including VAT, delivered to Changzhou.

Meantime, Maanshan Iron & Steel has decided to keep its scrap buying prices unchanged during the week. The company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,310 per mt, inclusive of VAT for deliveries to Maanshan. The company had hiked the purchasing prices by Yuan 100 per mt during previous week.