Eastern China Steel Mills Cut Ferrous Scrap Buying Prices

15 March 2016

Steel mills in Eastern China cut ferrous scrap buying prices as domestic rebar prices and seaborne iron ore prices retreated after a sharp rise, market participants said Monday.

Jiangsu Shagang Group, the largest scrap user in China, on Monday lowered its buying price by Yuan 20/mt ($3/mt) after the latest hike on March 8, a company source said.

The mill previously increased its buying price by Yuan 200/mt after returning from the Lunar New Year break.

Now Shagang will pay Yuan 1,240/mt ($191/mt), including 17% value-added tax, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap at least 6 mm thick.

Platts Steel Markets Daily is a leading source for iron ore prices, scrap metal prices, and iron ore news. It is the only publication that publishes global metallurgical coal spot prices on a daily basis and contains two iron ore price benchmark assessments in one report: Platts IODEX and TSI 62% iron ore.

Platts assessed last Friday 18-25-mm diameter HRB400 rebar in Beijing at Yuan 2,240-2,250/mt ($345-346/mt) ex-stock actual weight, including 17% VAT, down Yuan 95/mt ($15/mt) from Thursday.

Platts 62% Fe IODEX Friday was assessed down $1.15/dry mt from Thursday at $56.20/dmt CFR China.

Yonggang Group, also in Jiangsu province, followed Shagang's lead cutting its buying price by Yuan 20/mt, which took the price of high quality heavy melting scrap at least 8 mm thick at Yuan 1,300/mt, including VAT, delivered to Zhangjiagang.

Changzhou-based Zenith Steel on Monday also cut its buying price by Yuan 20/mt, taking the price of heavy melting scrap at least 6 mm thick to Yuan 1,200/mt, including VAT, delivered to Changzhou.

Maanshan Iron and Steel (Magang), the biggest steel producer in Anhui province, held its buying price of plate cut-offs at least 6 mm thick unchanged at Yuan 1,310/mt, including VAT, delivered to Maanshan, Anhui province, to await more clarity, a source with the company said.


Source : platts.com