By  Paul Ploumis 15 Aug 2015  Last updated at  08:02:58 GMT

Singapore (Platts) : Ferrous scrap prices in rose for the second straight week in eastern China on the back of stronger rebar prices in the Yangtze River Delta region with 18-25mm diameter HRB400 rebar in Shanghai being assessed up Yuan 40/mt Friday.

Platts assessed heavy melting scrap 6mm and above thick Friday at Yuan 1,370/mt ($214/mt), including 17% value-added tax, delivered to Zhangjiagang, Jiangsu province, up Yuan 80/mt ($13/mt) from a week earlier.

Jiangsu Shagang Group, the largest scrap user in China, raised its buying price by Yuan 80/mt on Tuesday, a company source said.

The mill last raised its buying price by Yuan 100/mt on Wednesday, August 5.

Now Shagang will pay Yuan 1,370/mt, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap 6mm and above thick.

Two traders in Anhui province sold scrap to Shagang at Yuan 1,370/mt with one of them saying that he would get a subsidy of Yuan 30/mt for a long-term relationship with the mill.

This was unrepeatable by other traders who did not benefit from this relationship.

Yonggang Group, also in Jiangsu province, followed suit increasing its buying price by Yuan 60/mt, which took the price of high quality heavy melting scrap at least 8mm above thick at Yuan 1,410/mt, delivered to Zhangjiagang.

Changzhou-based Dongfang Special Steel, raised its buying price of heavy melting scrap at least 6mm thick by Yuan 80/mt to Yuan 1,320/mt including VAT, delivered to Changzhou.

Maanshan Iron and Steel (Magang), the biggest steel producer in Anhui province, increased its buying price of plate cut-offs 6mm and above thick by Yuan 70/mt to Yuan 1,410/mt, delivered to Maanshan, Anhui province.

"It's unlikely that scrap price will go down in the near future as it's not easy for traders to collect scrap from the market at the current time" said a source from a mill in the region.

Unless otherwise stated all prices include 17% value-added tax.

Courtesy : Platts