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E China steel mills cut ferrous scrap buying prices further as rebar retreats

https://www.chemnet.com   Jul 07,2015 Platts
Steel mills in eastern China further lowered ferrous scrap buying prices over the weekend in tandem with falling rebar prices.

Jiangsu Shagang Group, the largest scrap consumer in China, Saturday cut its buying price by Yuan 30/mt ($5/mt), a company source said.

After the adjustment, Shagang will pay Yuan 1,260/mt ($202/mt), including 17% VAT, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap 6 mm and above thick.

This was the company's seventh reduction since the beginning of June, for a total drop of Yuan 190/mt.

In Shanghai's rebar spot market, prices of 18-25 mm diameter HRB400 rebar were Friday assessed down Yuan 75/mt at Yuan 1,900-1,920/mt theoretical weight.

Following Shagang's lead, Yonggang Group, also based in Jiangsu province, lowered its buying price of high quality heavy melting scrap with thickness of 8 mm and above by Yuan 30/mt to Yuan 1,330/mt, including VAT, delivered to Zhangjiagang.

The mill has cut its buying price six times since June for a total drop of Yuan 160/mt.

Changzhou-based Dongfang Special Steel cut its buying price by Yuan 30/mt, taking the price of heavy melting scrap at least 6 mm thick at Yuan 1,210/mt, including VAT, delivered to Changzhou.

Maanshan Iron and Steel or Magang, the biggest steelmaker in neighboring Anhui province, Saturday reduced its buying price for plate cut-offs 6 mm and above thick by Yuan 30/mt to Yuan 1,310/mt, including VAT, delivered to Maanshan city.

The mill has cut its buying price seven times since June for a total drop of Yuan 200/mt.

"We cut the scrap buying price in view of the continuous decrease in rebar prices, and where the price will go remains unknown; let's just wait and see," said a source from the mill.
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