Ferrous scrap buying prices slide on falling iron ore and rebar prices

Published: Dec 3, 2015 14:31

Save

Steelmakers in Eastern Chinese provinces have lowered ferrous scrap buying prices, on account of continued weakness in rebar and iron ore prices.

By Anil Mathews (ScrapMonster Author)

December 03, 2015 01:32:17 AM

BEIJING (Scrap Monster): The steel mills in Eastern China have announced further cut in ferrous scrap purchasing prices, in response to falling rebar and iron ore prices. The steelmakers who have announced further cut in scrap buying prices include Jiangsu Shagang and Maanshan Iron & Steel.

Jiangsu Shagang Group announced Wednesday that scrap purchasing prices will be lowered by Yuan 20 per mt as a result of sharp cut in rebar ex-works prices. This is the first round of cut being announced by the company during the month of December. The company has lowered the scrap purchasing prices by as much as Yuan 90 per mt during November. After the announcement, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,050 per mt, inclusive of 17% VAT delivered to Zhangjiagang, Jiangsu province.

Yonggang Group in the same province has announced cut in purchasing prices of high quality heavy melting scrap. The scrap of least 8 mm thickness delivered to Zhangjiagang, Jiangsu province now stands at Yuan 1,110/mt. Yonggang Group had returned to the market after having stopped scrap purchases during early-November.

Also, Maanshan Iron & Steel has decided to lower its scrap buying prices by Yuan 20 per mt from Thursday onwards. After the announcement, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,100 per mt, inclusive of VAT for deliveries to Maanshan.

Meantime, major steel mills including Dongfang Special Steel and Zenith Steel continued to stay away from the market.

The scrap purchasing prices are likely to drop further as seasonal weak demand is expected to put further pressure on rebar prices.

steelmakers ferrous scrap buying prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

17 hours ago

Yingkou Jianfa Shenghai Phase I 300,000 mt Copper Cathode Project Smelting Furnace Starts Production, Pyrometallurgy System Enters Furnace Drying Stage

At 9:58 on September 12, the core smelting furnace of the pyrometallurgy system at Yingkou Jianfa Shenghai Nonferrous Metals & Chemicals Co., Ltd.'s multi-metal recovery project was successfully ignited, officially entering the furnace drying stage and marking a key step toward full-line commissioning and production. Public information shows that the Yingkou Jianfa Shenghai polymetallic complex gold-silver ore comprehensive recovery technology upgrade, relocation, and expansion project uses copper concentrates as its main raw material, with an overall planned capacity of 600,000 mt/year of copper cathode to be built in two phases, with capacity of 300,000 mt/year in each phase. Phase I is designed to produce 300,000 mt/year of copper cathode and 1.18 million mt/year of sulphuric acid, along with supporting systems for smelting, converting, anode refining, electrolysis, slag beneficiation, and precious metal recovery. After this ignition, the project will carry out standardized furnace drying and hot-state integrated trial runs across the entire system to verify equipment, instruments, interlocks, and automatic control systems. The project has not yet formally started raw material feeding and production; after furnace drying and system commissioning are completed, it will further advance the commissioning of Phase I's 300,000 mt/year copper cathode capacity. If the project is successfully brought into production, it is expected to increase copper smelting capacity in North China and further boost domestic demand for copper concentrate raw materials.

17 hours ago

Sep 11, 2026 17:43

Precious Metals Remain Range-Bound as Macro Enters Key Validation Window [SMM Precious Metals Macro Analysis]

Sep 11, 2026 17:43

Sep 11, 2026 16:30

Amigo Resources Reports PGM Values of Up to 7.07 ppm in Tanzania Processing Testwork

[SMM Flash] Amigo Resources reported independent laboratory results from selected Tanzanian material showing combined PGM values of 6.94–7.07 ppm, alongside residual gold values of 3.27–3.47 ppm. The company said it is assessing the integration of proprietary PGM concentration technology into its processing flowsheets to target recovery from gravity tailings and other residual material. Amigo is also evaluating a pyrometallurgical copper-matte treatment route and has mobilised a small-scale furnace for further testwork. The programme could potentially establish PGMs as a recoverable by-product from Amigo's Tanzanian polymetallic material if subsequent metallurgical work demonstrates viable recoveries. However, the reported grades relate to selected test material and processing studies and do not constitute a compliant Mineral Resource, reserve or evidence of commercial-scale PGM production. Further metallurgical testing will therefore be important in determining whether the reported PGM content can translate into an economically recoverable product stream.

Sep 11, 2026 16:30