By Anil Mathews (ScrapMonster Author)

November 17, 2015 02:51:10 AM

BEIJING (Scrap Monster):  The huge fall in demand and worse market sentiments has lead to further fall in ferrous scrap buying prices by steel mills in Eastern China. The prices have hit fresh lows, after plunging to nearly ten-year lows during the previous month.

Jiangsu Shagang Group announced a cut of Yuan 30 per mt in scrap buying prices on Saturday, mainly on account of declining rebar prices. This is the first cut announced by the company during November this year. Shagang had cut its scrap purchasing prices by Yuan 80 per mt during the previous month. Post cut, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,130 per mt, inclusive of VAT delivered to Zhangjiagang.

Other major steel makers in the Jiangsu province including Yonggang Group, Changzhou Zenith Steel and Dongfang Special Steel had temporarily suspended scrap purchases. There is no confirmation as to when these companies will return to the market.

Meanwhile, Maanshan Iron & Steel too announced a cut of Yuan 30 per mt on scrap buying prices on Satrday. After the announcement of price cut, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,180 per mt, inclusive of VAT for deliveries to Maanshan.

Traders in the region expect scrap prices to remain flat in the immediate future as they have fallen big during recent times. However, scrap prices are likely to hit new lows, primarily due to ailing steel market.