By Anil Mathews (ScrapMonster Author)
October 19, 2015 03:59:29 AM
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 Tuesday. This is the second cut announced by the company during the past one week. Shagang had cut its scrap purchasing prices by Yuan 20 per mt last Saturday. Post cut, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,200 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 1,260/mt.
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 975 per mt, inclusive of VAT for deliveries to Changzhou. The mill had lowered scrap purchasing prices last Saturday 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 1,250 per mt, inclusive of VAT for deliveries to Maanshan.
Traders in the region expect further cut in scrap prices on account of falling rebar prices. A recovery in scrap prices is unlikely to happen soon, they noted.