By Anil Mathews (ScrapMonster Author)
November 24, 2015 05:22:49 AM
BEIJING (Scrap Monster): The continuous fall in rebar prices have forced steel mills in Eastern China to further lower their ferrous scrap purchasing prices. The prices have now plunged to fresh lows. It must be noted that the scrap purchasing prices which had plunged to 10-year lows during October this year, have failed to stage a recovery from those levels.
Jiangsu Shagang Group announced that scrap purchasing prices will be lowered by Yuan 30 per mt as a result of sharp cut in rebar ex-works prices. This is the second round of cut being announced by the company within a week. Shaganag Group had announced cut of Yuan 30 per mt in scrap buying prices last Saturday. After the announcement, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,100 per mt, inclusive of VAT delivered to Zhangjiagang, Yuan 60 per mt lower when compared with the previous week.
Also, Maanshan Iron & Steel has decided to lower its scrap buying prices by Yuan 30 per mt during the week. After the announcement, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,150 per mt, inclusive of VAT for deliveries to Maanshan.
Meantime, major steel mills including Yonggang Group, Dongfang Special Steel and Zenith Steel stayed away from the market.
According to traders, it is quite hard to predict the scrap price movement, especially due to falling iron ore and rebar prices.