By Paul Ploumis 22 Jun 2015 Last updated at 08:35:07 GMT

BEIJING (Scrap Monster): The steel mills in Eastern China region have been forced to announce further decline in scrap purchasing prices, mainly on account of falling rebar prices. The mills have announced as many as three rounds of cuts over the past two weeks.

Jiangsu Shagang Group announced a cut of Yuan 30 per mt in scrap buying prices Friday. 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 Saturday. Post cut, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group will now be at Yuan 1,370 per mt, inclusive of VAT delivered to Zhangjiagang. The mill has implemented a cut of Yuan 80 per mt during the past two weeks alone.

Yonggang Group in the same province also lowered the scrap purchasing prices Monday 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 40 per mt on scrap buying prices Friday. After the announcement of price cut, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,420 per mt, inclusive of VAT for deliveries to Maanshan.

Trade sources indicate that scrap prices are likely to drop further as steel mills are less likely to procure more scrap at a time when rebar prices continue to fall. Steelmakers and recyclers too hold a bearish view, they confirmed.