SHANGHAI, Jul 30 (SMM) – Electric arc furnace (EAF) steelmakers with scrap as feedstock across south China saw bigger losses as steel scrap prices held firm and rebar prices weakened from dismal market sentiment. 

As of Tuesday July 30, losses at EAF steel mills stood at 78.5 yuan/mt, compared with 38.5 yuan/mt a week ago, SMM assessed based on steel scrap prices of 2,370 yuan/mt without taxes in Changzhou of Jiangsu province.

Expanded losses grew inclinations for cuts across steel mills in the south. In south-west China, relatively cheap steel scrap and high prices of rebar kept producers on the verge of losses. While local rebar mills currently remain under full operation, continued rainfall is likely to lower production in the near term. 

Environmental cutback plans for August are still unavailable. This dampened market sentiment and continued to weigh on rebar prices. 

As of Tuesday July 30, offers of spot rebar lost 20 yuan/mt on the day to 3,930 yuan/mt in Shanghai, amid weak transactions. In Hangzhou, prices fell 40 yuan/mt and stood at 3,990 yuan/mt.