East China steelmakers cut ferrous scrap buying prices to record low


Steel mills in eastern China on Monday lowered ferrous scrap buying prices, as rebar prices continued to fall, dragged down by sluggish winter demand and as iron ore prices slid to a record low on steelmakers' output cuts.

Jiangsu Shagang Group, the largest scrap consumer in China, cut its buying prices Monday by Yuan 20/mt ($3/mt) after a reduction of the same amount Saturday, a company source said.

The steelmaker has cut its prices three times in December for a total of Yuan 60/mt.

After the adjustment, Shagang will pay Yuan 1,010/mt ($158/mt), including 17% value added tax, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap at least 6 mm thick.

In Shanghai's rebar spot market, prices of 18-25-mm diameter HRB400 rebar Friday were assessed down Yuan 45/mt week on week at Yuan 1,670-1,700/mt theoretical weight, which set another fresh record low since Platts started assessing the assessment in August 2001.

Platts 62% Fe IODEX dropped $4.45/dry mt week on week to an all-time low of $39.60/dmt CFR China Friday.

Yonggang Group, also in the province, followed Shagang's lead by cutting the prices of high quality heavy melting scrap at least 8 mm thick by Yuan 40/mt to Yuan 1,070/mt, including VAT, delivered to Zhangjiagang, Jiangsu province.

Maanshan Iron and Steel or Magang, the biggest steelmaker in Anhui province, on Monday announced to lower its buying price of plate cut-offs by Yuan 20/mt from Tuesday after a cut of the same amount on Saturday.

After that, the mill will buy plate cut-offs at least 6 mm thick at Yuan 1,060/mt, including VAT, delivered to Maanshan, Anhui province.

Source from : Platts