By Paul Ploumis 16 Jun 2015 Last updated at 02:41:55 GMT

BEIJING (Scrap Monster): The steel mills in Eastern China region have announced further cut in scrap purchasing prices, mainly on account of lower rebar prices. This is the second round of cut announced by mills in the region over the past one week.

Jiangsu Shagang Group announced a cut of Yuan 20 per mt in scrap buying prices Saturday. This is the second cut announced by the company within the last one week. Shagang had cut its scrap purchasing prices by Yuan 30 per mt last Tuesday. Post cut, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group will now be at Yuan 1,400 per mt, inclusive of VAT delivered to Zhangjiagang.

Yonggang Group in the same province also lowered the scrap purchasing prices by Yuan 20 per mt delivered to Zhangjiagang, Jiangsu province. After cut, the scrap buying prices of heavy melting scrap at least 8 mm thickness now stands at Yuan 1,440/mt.

Dongfang Special Steel too announced cut of Yuan 30 per mt in purchasing price of heavy melting scrap of thickness 6 mm and above. Post cut, the scrap buying prices remained at Yuan 1,320 per mt, inclusive of VAT for deliveries to Changzhou. The mill had lowered scrap purchasing prices last Tuesday also.

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 1,460 per mt, inclusive of VAT for deliveries to Maanshan. The company had reduced scrap buying prices by Yuan 30 per mt last Tuesday.