By Anil Mathews (ScrapMonster Author)

March 07, 2016 06:48:03 AM

BEIJING (Scrap Monster): The steel mills in Eastern China region have kept their ferrous scrap purchasing prices unchanged for the current week. The purchasing prices had increased considerably during the past few weeks. The buying prices are expected to remain flat in the near term on the back of rising strength in rebar prices.

Jiangsu Shagang Group announced that scrap buying prices will remain unchanged for the current week. Post announcement, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group will continue to remain at Yuan 1,160 per mt, inclusive of 17% value-added tax (VAT) delivered to Zhangjiagang.

Meantime, Yonggang Group in the same province kept its scrap purchasing prices unchanged for deliveries to Zhangjiagang, Jiangsu province. The company’s buy prices of high quality heavy melting scrap of thickness 8mm and above remained flat at Yuan 1,200 per mt including VAT delivered to Zhangjiagang.

Also, Anhui-based Maanshan Iron & Steel’s buy price for plate cut-offs with thickness 6mm and above for deliveries to Maanshan will continue to remain unchanged from the previous week at Yuan 1,210 per mt including VAT.

Market sources indicate that the scrap prices are expected to remain stable in the short term on account of ongoing strength in domestic rebar prices. The prices have increased significantly by nearly Yuan 125/mt during the past one month. The rebar prices are anticipated to continue their run in the forthcoming weeks as week, thereby lending support to scrap prices.