Ferrous scrap prices drop to 10-year lows in Eastern China

By Anil Mathews (ScrapMonster Author)
October 26, 2015 06:34:15 AM
The steel mills in Eastern China region have announced further cut in scrap purchasing prices, mainly on account of falling demand and bearish market sentiment.Ferrous scrap prices drop to 10-year lows in Eastern China
BEIJING (Scrap Monster):  The steel mills in Eastern China region have announced further cut in scrap purchasing prices, mainly on account of weak demand situation and extremely bearish market sentiment. The scrap prices in the region have plunged to 10-year lows.

Jiangsu Shagang Group announced a cut of Yuan 20 per mt in scrap buying prices Wednesday. This is the second cut announced by the company during the past three days. Shagang had cut its scrap purchasing prices by Yuan 20 per mt on Monday. Post cut, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,160 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 1,220/mt.

Dongfang Special Steel which had announced cut of Yuan 20 per mt in purchasing price of heavy melting scrap of thickness 6 mm and above, has now decided to stop scrap purchases for the moment. The company declined to comment on how soon they will return to the market.

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 1,210 per mt, inclusive of VAT for deliveries to Maanshan.

Traders in the region expect further cut in scrap prices. According to them, scrap prices are likely to hit new lows as recyclers are seen striving for survival.