Ferrous scrap prices drop in Eastern China as rebar prices slide

By Anil Mathews (ScrapMonster Author)

May 02, 2016 02:42:50 AM

BEIJING (Scrap Monster):The steel mills in Eastern China region have announced further decline in scrap purchasing prices, mainly on account of falling domestic rebar prices. The scrap prices in the region had earlier hit the highest level in nearly one year. The price of heavy melting scrap 6 mm and above thickness hit Yuan 1,690/mt on Friday including 17% value added tax (VAT), delivered to Zhangjiagang, Jiangsu province.

Jiangsu Shagang Group announced a drop of Yuan 30 per mt in scrap buying prices Friday. The company had dropped the scrap purchasing prices by Yuan 100 per mt on Thursday also. Post decrease, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,690 per mt, inclusive of 17% VAT delivered to Zhangjiagang.

Yonggang Group in the same province also cut scrap purchasing prices by Yuan 100 per mt delivered to Zhangjiagang, Jiangsu province on Thursday. The company had reduced the scrap purchasing prices by Yuan 80 per mt on Wednesday. After cut, the scrap buying prices of heavy melting scrap at least 8 mm thickness now stands at Yuan 1,780/mt.

Meantime, Zenith Steel too reduced the buying price of heavy melting scrap at least 6 mm thick by Yuan 30 per mt on Friday, following a cut of Yen 100 per mt on Thursday. The buying price currently stands at Yuan 1,650/mt, including VAT, delivered to Changzhou.

Also, Maanshan Iron & Steel announced a cut of Yuan 100 per mt on scrap buying prices during the week. After the announcement of price cut, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,770 per mt, inclusive of VAT for deliveries to Maanshan in Anhui province.

Traders in the region are quite unsure about the future price movements. Any pickup in domestic rebar prices will take the scrap prices higher.