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Ferrous scrap prices fall in eastern China on lower steel prices

https://www.chemnet.com   Jan 26,2015 Platts
Ferrous scrap prices fell in eastern China for the third consecutive week, as steel mills in the region continued cutting scrap buying prices on falling steel prices.

Platts assessed heavy melting scrap 6mm and above thick at Yuan 1,800/mt ($289/mt) in eastern China Friday, January 23, including VAT, delivered to Zhangjiagang, Jiangsu province, down Yuan 30/mt from a week earlier.

Jiangsu Shagang Group Thursday lowered its scrap buying price by Yuan 30/mt, which was the second cut within a week after a reduction of Yuan 20/mt last Friday.

The move followed the mill's reduction in rebar ex-works price for January 21-31 by Yuan 120/mt, Platts reported earlier.
After the adjustment, Shagang will pay Yuan 1,800/mt including VAT, delivered to Zhangjiagang, for 6mm and above thick heavy melting scrap.

Changzhou-based Dongfang Special Steel in the same province Thursday followed suit, cutting its buying price for the second straight day by Yuan 30/mt.

Also on Thursday, Anhui province's largest steelmaker Maanshan Iron & Steel, better known as Magang, lowered its buying price for plate cut-offs at least 6mm thick by Yuan 30/mt to Yuan 1,870/mt, delivered to Maanshan, including VAT.

The mill has cut its scrap purchase price three times since last Thursday, by a cumulative Yuan 70/mt.

Changzhou Zenith Steel and Jiangsu Yonggang Group have stopped buying scrap altogether, Platts reported previously.

"Scrap prices might continue to fall as steel prices keep dropping," said a Jiangsu-based scrap recycler.

As for finished steel market, 18-25mm diameter HRB400 rebar spot price in Shanghai was assessed Yuan 90/mt lower week on week, at Yuan 2,390-2,400/mt theoretical weight and including 17% VAT.
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