Author: Paul Ploumis
14 Apr 2015 Last updated at 03:00:27 GMT
BEIJING (Scrap Monster): The steel mills in Eastern China have announced further cut in ferrous scrap purchasing prices. The cut comes in the light of declining rebar and iron ore prices.
Sources indicate that Jiangsu Shagang Group announced cut of Yuan 30 per mt on Saturday. The company had earlier lowered its scrap purchasing prices by Yuan 30 per mt last Sunday. Following the announcement, scrap purchasing price of heavy melting scrap of thickness 6 mm and above now stands at Yuan 1,550 per mt, inclusive of VAT. The company has dropped its scrap buying prices by Yuan 170 per mt since March this year.
Meantime, Yonggang Group also declared cut of Yuan 30 per mt on purchase price of heavy melting scrap 8mm and above effective Sunday onwards. After adjustment, the scrap delivered to the company’s Zhangjiagang works now stands at Yuan 1,610 per mt including VAT. The company has lowered its scrap buying prices by Yuan 80 per mt since March 2015.
Also, Maanshan Iron & Steel (Magang) in Anhui province reduced its scrap purchasing price of plate cut-offs of thickness 6 mm and above by Yuan 30 per mt. After adjusting for the price cut announced Sunday, the buying price now stands at Yuan 1,610 per mt including VAT. Magang has lowered its buying price seven times for a total amount of Yuan 180 per mt since the Lunar New Year holidays.
According to steel mills in Eastern China, the scrap prices are likely to fall down further if the decline in rebar and iron ore prices is not arrested. The slide in rebar and iron ore futures projects bleak outlook for the coming quarter, mills noted.