Ferrous scrap prices in eastern China dropped to brand-new record lows as steel mills in the region successively reduced their buying degrees as a result of diving iron ore prices and also sufficient supply.
Jiangsu Shagang Group, the biggest scrap consumer in China, Tuesday cut its scrap buying price by Yuan 20/mt ($3/mt).
biocide products was the mill's 6th reduction in March amounting to a cut of Yuan 140/mt.
After the adjustment, Shagang will certainly pay Yuan 1,580/ mt ($255/mt) consisting of BARREL, delivered to Zhangjiagang, for hefty melting scrap of a density of 6 mm and above.
This was likewise Yuan 20/mt lower than Platts' analysis of ferrous scrap last Friday at Yuan 1,600/ mt supplied Zhangjiagang, the most affordable because the collection started being released in March 2005.
Shagang's cut followed that of Dongfang Unique Steel, which Monday announced a Yuan 30/mt decrease, taking its acquiring rate of heavy melting scrap 6 mm thick and over to Yuan 1,470/ mt, consisting of VAT and delivered to Changzhou.
The mill has reduced its purchasing cost 7 times in March, standing for a drop of Yuan 200/mt in overall.
Maanshan Iron & Steel, or Magang, the greatest steelmaker in Anhui district, Wednesday cut its acquiring cost by Yuan 20/mt due to adequate supply.
This was the mill's 6th cut since March 1 for an advancing decline of Yuan 150/mt.
Afterwards, Magang will buy plate cut-offs with thickness of 6 mm as well as over at Yuan 1,640/ mt, consisting of VAT, supplied to Maanshan.
The Jiangsu Yonggang Group maintained its acquiring price unmodified for now while Changzhou Zenith Steel continued to stay away from the market.
If iron ore rates proceeded to decline despite of increasing rebar rates, Mills are not optimistic about the scrap market and also one source from Shagang claimed that scrap cost could fall further.
Platts evaluated 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 record lows as steel mills in the region successively reduced their buying degrees as a result of diving iron ore prices and also sufficient supply.
