Author: Paul Ploumis26 May 2015 Last updated at 02:52:32 GMT

BEIJING (Scrap Monster): The declining rebar prices have led to further drop in scrap buying prices by steel mills in Eastern China region. The mills see no recovery for scrap prices in the immediate near term. Sources indicate that scrap purchasing prices may fall further down.

Jiangsu Shagang Group announced a cut of Yuan 20 per mt in scrap buying prices last week. This was the first cut announced by the company during this month. Shagang had kept its scrap buying prices unchanged since April 26th. Post cut, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group remained at Yuan 1,450 per mt, inclusive of VAT delivered to Zhangjiagang. The company had lowered its prices several times during March this year.

Yonggang Group in the same province also lowered the scrap purchasing prices by Yuan 20 per mt delivered to Zhangjiagang. This is the second round of cuts by the company following the one during May 6th due to maintenance of one of its EAFs.

Dongfang Special Steel too announced cut of Yuan 20 per mt in purchasing price of heavy melting scrap of thickness 6 mm and above. Post cut, the scrap buying prices remained at Yuan 1,430 per mt, inclusive of VAT for deliveries to Changzhou. The mill had announced seven rounds of cuts during March this year. This is the first cut since April 18th.

Also, Maanshan Iron & Steel announced a cut of Yuan 20 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 1,510 per mt, inclusive of VAT for deliveries to Maanshan. The company had lowered the scrap buying prices six times during the month of March, accounting for a cumulative drop of Yuan 150 per mt in buy prices. This is the first cut announced since April 26th.