Ferrous scrap prices in eastern China dropped to brand-new document lows as steel mills in the region successively reduced their acquiring levels due to plunging iron ore costs as well as sufficient supply.
Jiangsu Shagang Group, the most significant scrap customer in China, Tuesday reduced its scrap purchasing rate by Yuan 20/mt ($3/mt).
This was the mill's 6th reduction in March completing a cut of Yuan 140/mt.
After the change, Shagang will certainly pay Yuan 1,580/ mt ($255/mt) consisting of VAT, supplied to Zhangjiagang, for hefty melting scrap of a density of 6 mm as well as above.
This was likewise Yuan 20/mt lower than Platts' evaluation of ferrous scrap last Friday at Yuan 1,600/ mt delivered Zhangjiagang, the lowest given that the series began being published in March 2005.
Shagang's cut complied with that of Dongfang Special Steel, which Monday revealed a Yuan 30/mt reduction, taking its purchasing price of heavy melting scrap 6 mm thick as well as over to Yuan 1,470/ mt, consisting of BARREL and provided to Changzhou.
The mill has actually reduced its buying cost seven times in March, standing for a decrease of Yuan 200/mt in total.
Maanshan Iron & Steel, or Magang, the largest steelmaker in Anhui district, Wednesday reduced its acquiring price by Yuan 20/mt due to adequate supply.
This was the mill's 6th cut given that March 1 for a cumulative decline of Yuan 150/mt.
Afterwards, biocides manufacturer will certainly purchase plate cut-offs with thickness of 6 mm and also above at Yuan 1,640/ mt, consisting of BARREL, delivered to Maanshan.
The Jiangsu Yonggang Group kept its buying rate unmodified for now while Changzhou Zenith Steel continued to steer clear of from the marketplace.
If iron ore rates proceeded to decrease despite of increasing rebar rates, Mills are not confident about the scrap market and one resource from Shagang stated that scrap rate might drop better.
Platts examined the 62%-Fe Iron Ore Index at $48/dry mt CFR North China Wednesday, down $3.25/ completely dry mt from Tuesday, a record low.
Ferrous scrap prices in eastern China dropped to brand-new document lows as steel mills in the region successively reduced their acquiring levels due to plunging iron ore costs as well as sufficient supply.
