Eastern China ferrous scrap price tracks rebar lower


Ferrous scrap prices resumed their descent in eastern China as rebar prices continued to fall due to weak demand and bearish sentiment.

Platts assessed heavy melting scrap 6 mm and above thick Friday at Yuan 1,200/mt ($189/mt), including 17% value-added tax, delivered to Zhangjiagang, Jiangsu province, down Yuan 40 from a week earlier.

Jiangsu Shagang Group, the biggest scrap consumer of China, on Tuesday cut its buying price by Yuan 20/mt after a reduction of the same amount on Saturday.

The mill has cut its buying price twice in a week, amounting to a total of Yuan 40/mt.

After the adjustment, Shagang will buy heavy melting scrap 6mm and above thick at Yuan 1,200/mt including 17% VAT, delivered to Zhangjiagang, Jiangsu province.

Yonggang Group, also based in Jiangsu province, followed suit, cutting its buying price of high quality heavy melting scrap with a thickness of 8mm and above by the same Yuan 20 to Yuan 1,260/mt, including VAT, delivered to Zhangjiagang.

Changzhou-based Dongfang Special Steel, on Wednesday lowered its buying price by Yuan 20/mt. Now the mill will pay Yuan 975/mt, excluding VAT, delivered to Changzhou, Jiangsu province, for heavy melting scrap with the thickness of 6mm and above.

Maanshan Iron and Steel or Magang, the largest steel producer in neighboring Anhui province, on Tuesday cut its buying price for plate cut-offs 6mm and above thick by Yuan 20/mt to Yuan 1,250/mt, including VAT, delivered to Maanshan city, Anhui province.

Steel mills and traders surveyed by Platts were not optimistic about scrap market in view of the ailing steel market.

"There is room for scrap price to further go down since rebar prices continue to drop," said a source from a mill in the region. "We have to cut scrap buying price continuously because the cost of producing steel products with hot metals remain high," he added.

In Shanghai's rebar spot market, prices of 18-25mm diameter HRB400 rebar Friday were assessed down Yuan 15 on week to Yuan 1,900-1,920/mt actual weight.

Source from : Platts