Eastern China's Steel Mills Cut Ferrous Scrap Buying Prices Again

12 May 2016

Large and medium-sized steel mills in eastern China on Wednesday cut their ferrous scrap buying prices by a large margin once again as Chinese domestic steel prices continued to fall.

Jiangsu Shagang Group, the largest scrap user in China, Wednesday said it would lower its buying price of heavy melting scrap of 6mm thickness and above by Yuan 100/mt ($15/mt) after a cut of Yuan 50/mt on Tuesday, a company source said.

Shagang will now pay Yuan 1,400/mt ($215/mt), including 17% VAT, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap of 6mm thickness and above.

The mill has cut its buying price by a total of Yuan 420/mt since it last increased them on April 25 by Yuan 200/mt.

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In Beijing's retail market on Tuesday, S&P Global Platts assessed 18-25mm diameter HRB400 rebar at Yuan 2,485/mt ($382/mt) ex-stock actual weight, including 17% VAT, down Yuan 110/mt ($17/mt) from the Monday. Prices have fallen by a total Yuan 675/mt for 10 consecutive days.

Changzhou-based Zenith Steel followed suit, cutting its buying price of heavy melting scrap of at least 6mm thickness by Yuan 100/mt to Yuan 1,360/mt, including VAT, delivered to Changzhou.

Maanshan Iron and Steel or Magang, the biggest steelmaker in Anhui province, Wednesday lowered its buying price of plate cut-offs of 6mm thickness and above to Yuan 1,500/mt including VAT, delivered to Maanshan, Anhui province, down Yuan 100/mt and following a reduction of Yuan 60/mt on Tuesday.


Source : platts.com