By Anil Mathews (ScrapMonster Author)
April 18, 2016 03:10:25 AM
BEIJING (Scrap Monster): The steel mills in Eastern China region have announced further hike in scrap purchasing prices, mainly on account of rising domestic rebar prices. The scrap prices in the region have now hit highest level in nearly one year. The price of heavy melting scrap 6 mm and above thickness hit Yuan 1,520/mt on Friday including 17% value added tax (VAT), delivered to Zhangjiagang, Jiangsu province. The prices were up by Yuan 160/mt when compared with the previous week levels.
Jiangsu Shagang Group announced a hike of Yuan 100 per mt in scrap buying prices Friday. Post hike, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,520 per mt, inclusive of 17% VAT delivered to Zhangjiagang. The steel maker had announced hike of Yuan 60 per mt earlier during the week.
Yonggang Group in the same province also increased the scrap purchasing prices by Yuan 100 per mt delivered to Zhangjiagang, Jiangsu province. After increase, the scrap buying prices of heavy melting scrap at least 8 mm thickness now stands at Yuan 1,610/mt.
Meantime, Zenith Steel too raised the buying price of heavy melting scrap at least 6 mm thick by Yuan 120 per mt during the week. The buying price currently stands at Yuan 1,480/mt, including VAT, delivered to Changzhou.
Also, Maanshan Iron & Steel announced a hike of Yuan 100 per mt on scrap buying prices during the week. After the announcement of price increase, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,570 per mt, inclusive of VAT for deliveries to Maanshan in Anhui province.
Traders in the region are quite unsure about the future price movements. Although a major correction is not on the cards, traders are seen waiting on the sidelines for more clarity.
