Steel mills in eastern China have cut their ferrous scrap buying prices in response to the continuous drop in rebar and iron ore prices.
Jiangsu Shagang Group — the largest scrap consumer in China — Wednesday cut its buying prices by Yuan 20/mt ($3/mt) as rebar and iron ore prices continued to fall, a company source said.
This was the mill’s fourth cut in November with a total amount of Yuan 110/mt.
After the adjustment, Shagang will pay Yuan 1,050/mt, including 17% value-added tax, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap 6mm and above thick.
In Beijing’s rebar spot market, prices of 18-25 mm diameter HRB400 rebar Tuesday were assessed at Yuan 1,755-1,775/mt actual weight, down Yuan 25 from a week earlier.
Platts assessed 62% Fe IODEX at $40.50/dry mt CFR North China Tuesday, down $3.50 from a week earlier.
Yonggang Group, also in the province, followed Shagang?s lead lowering the prices of high quality heavy melting scrap at least 8 mm thick by the same Yuan 20 to Yuan 1,110/mt, including VAT, delivered to Zhangjiagang, Jiangsu province.
Maanshan Iron and Steel or Magang, the biggest steelmaker in Anhui province, will lower its buying prices by Yuan 20/mt from Thursday, a company source said. After that, the mill will buy plate cut-offs with thickness of 6mm and above at Yuan 1,100/mt, including VAT, delivered to Maanshan, Anhui province.
Scrap price still had a certain room to further go down as rebar prices continued to drop in the seasonal lull, he added.
Source: http://www.business-standard.com/