Author: Paul Ploumis
08 Jun 2015 Last updated at 08:59:52 GMT
BEIJING (Scrap Monster): The rising iron ore prices have forced many steel mills in Eastern China to keep their ferrous scrap buying prices stable. The prices remained almost flat during the past week.
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 scrap purchasing prices remained unchanged from the previous week. It must be noted that Jiangsu Shagang Group had lowered the purchasing prices by Yuan 20 per mt during the week prior to this.
Yonggang Group in the same province also kept its buying price unchanged for deliveries to Zhangjiagang. Earlier in May this year, the company had cut its scrap purchasing prices twice.
Dongfang Special Steel too decided to hold steady the purchasing price of heavy melting scrap of thickness 6 mm and above. The scrap buying prices remained at Yuan 1,430 per mt, inclusive of VAT for deliveries to Changzhou. Also, Maanshan Iron & Steel too stated that the company’s buy price for plate cut-offs with thickness 6mm and above will continue to remain at Yuan 1,510 per mt, inclusive of VAT for deliveries to Maanshan, unchanged from the previous week.
Meantime, Changzhou-based Zenith Steel stayed out of the market.
According to market participants, the scrap prices have found support from rising iron ore prices. However, the sustainability of the trend remains unclear as rebar prices tend to remain weak.