By Anil Mathews (ScrapMonster Author)
April 25, 2016 07:18:34 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 over thirteen months.
Jiangsu Shagang Group announced a hike of Yuan 100 per mt in scrap buying prices Thursday. The company had hiked the price by the same amount last Friday too. Post hike, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group now stands at Yuan 1,620 per mt, inclusive of 17% VAT delivered to Zhangjiagang.
Yonggang Group in the same province also increased the scrap purchasing prices by Yuan 150 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 1,760/mt.
Meantime, Zenith Steel too raised the buying price of heavy melting scrap at least 6 mm thick by Yuan 100 during the week. The buying price currently stands at Yuan 1,580/mt, including VAT, delivered to Changzhou.
Also, Maanshan Iron & Steel announced a hike of Yuan 100 per mt on scrap buying prices on Thursday. After the announcement of price increase, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,670 per mt, inclusive of VAT for deliveries to Maanshan in Anhui province.
The ferrous scrap prices in the region have increased for five consecutive weeks now. The prices are now at the highest level since November 2014. The prices are expected to remain stable during the upcoming weeks, traders noted. No major price correction is expected, they added.