[Scrap Price]Steel mills in Eastern China hike ferrous scrap buy prices

By Paul Ploumis 06 Aug 2015 Last updated at00:59:10 GMT 

BEIJING (Scrap Monster):The steel mills in Eastern China region have announced hike in ferrous scrap purchasing prices. This is the first hike announced by the mills in the region since October last year. The scrap purchasing prices have been on a decline for a long time.

Jiangsu Shagang Group announced an increase of Yuan 100 per mt in scrap buying prices. Post increase, the purchasing price for heavy melting scrap with thickness 6mm and above by Shagang Group will now be at Yuan 1,290 per mt, inclusive of 17% value-added tax (VAT) delivered to Zhangjiagang. The company noted that the significant rise in rebar prices led to the hike in scrap buy prices.

Yonggang Group in the same province also hiked the scrap purchasing prices by Yuan 100 per mt delivered to Zhangjiagang, Jiangsu province. After hike, the scrap buying prices of heavy melting scrap at least 8 mm thickness now stands at Yuan 1,350/mt.

Dongfang Special Steel too announced marginally higher hike of Yuan 120 per mt in purchasing price of heavy melting scrap of thickness 6 mm and above. Post announcement, the scrap buying prices remained at Yuan 1,240 per mt, inclusive of VAT for deliveries to Changzhou.

Also, Anhui-based Maanshan Iron & Steel announced a rise of Yuan 100 per mt on scrap buying prices during the week. After the announcement of price cut, the company’s buy price for plate cut-offs with thickness 6mm and above now stands at Yuan 1,340 per mt, inclusive of VAT for deliveries to Maanshan.

However, industry participants remained cautious as to whether the price hike will sustain in the forthcoming weeks. The steel demand in the country has not yet shown any significant improvement, they noted.