Chemical News
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Eastern China ferrous scrap prices fall on weak long products, iron ore
http://www.chemnet.com Dec 22,2014 Platts
Market participants held a pessimistic outlook of prices.
Platts assessed heavy melting scrap at least 6 mm thick at Yuan 1,950/mt ($313/mt) including VAT, delivered to Zhangjiagang city in Jiangsu province Friday, down Yuan 20/mt from a week earlier.
Jiangsu Shagang, the largest private steel mill and scrap consumer in China, cut buying prices of ferrous scrap by Yuan 20/mt Tuesday. After the adjustment, Shagang's buying prices for heavy melting scrap at least 6 mm thick was Yuan 1,950/mt delivered to Zhangjiagang, including VAT.
Changzhou-based Zenith Steel followed suit and reduced purchasing prices of the ferrous scrap by Yuan 20/mt Tuesday. Magang in Anhui province on Friday announced it would cut its buying price by the same amount.
After the adjustments, Zenith Steel's buying price for HMS 6 mm and above were Yuan 1,740/mt, including VAT, and Magang's prices of plate cutoffs were Yuan 2,030/mt, including VAT.
Yonggang and Dongfang Special Steel kept their buying prices unchanged as they had low inventories.
Steel mills and traders mostly expect near-term ferrous scrap prices to continue to drop.
"Ferrous scrap prices will remain relatively weak and might go down slightly as longs and iron ore prices fall," an official from a mill told Platts. "The ferrous scrap market is at risk of falling after the Chinese New Year as steel and iron ore prices might reach a seasonal low at that time."
As for spot market of finished steel products, Shanghai's 18-25 mm diameter HRB400 rebar was assessed Friday down Yuan 30/mt week on week at Yuan 2,680-2,710/mt, theoretical weight basis and including 17% VAT.
The 62% Fe Iron Ore Index was $68.50/dry mt CFR North China Thursday, down $1/dmt week on week.
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