By Anil Mathews (ScrapMonster Author)

March 21, 2016 02:23:59 AM

BEIJING (Scrap Monster): The steel mills in Eastern China region have announced further cut in scrap purchasing prices. The scrap prices had hit six-month highs last week. Market sources indicate that the drop in scrap purchasing prices is mainly on account of the sharp drop in domestic rebar and seaborne iron ore prices. The scrap purchasing prices are most likely to witness further weakness in the immediate near term.

Jiangsu Shagang Group has announced a cut of Yuan 30 per mt in scrap buying prices on Wednesday, following cut of Yuan 20 per MT on Monday. Post cut, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group will be Yuan 1,210 per mt, inclusive of VAT delivered to Zhangjiagang. The mill had increased the scrap buying price by Yuan 200 per mt during the weeks after the Lunar New Year holiday.

Yonggang Group in the same province also lowered the scrap purchasing prices of heavy melting scrap 8mm and above by Yuan 30 per mt delivered to Zhangjiagang. Post reduction, the scrap purchasing prices were at Yuan 1,270/mt, including VAT, delivered to Zhangjiagang.

Zenith Steel too announced that purchasing price of heavy melting scrap of thickness 6 mm and above for deliveries to Changzhou will be reduced by Yuan 30 per mt. After price cut, the scrap purchasing prices will be Yuan 1,170/mt, including VAT, delivered to Changzhou.

Meantime, Maanshan Iron & Steel has decided to lower its scrap buying prices by Yuan 50 per MT. The company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,260 per mt, inclusive of VAT for deliveries to Maanshan. The company had kept the purchasing prices unchanged during previous week.