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.