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Eastern China ferrous scrap rises $11/mt on week

http://www.chemnet.com   May 03,2016 Platts
Eastern China ferrous scrap rises $11/mt on week
Steel mills in eastern China cut their ferrous scrap buying prices in the latter half of this week after a significant increase on Monday, given domestic rebar prices started to trend downward.

Platts assessed heavy melting scrap with a thickness of 6 mm and above on Friday at Yuan 1,690/mt ($261/mt), including 17% VAT, delivered to Zhangjiagang, Jiangsu province, up Yuan 70/mt ($11/mt) from a week earlier.

Jiangsu Shagang Group, the largest scrap user in China, Friday lowered its buying price by another Yuan 30/mt after a drop of Yuan 100/mt on Thursday, a company source said.

After that, Shagang will pay Yuan 1,690/mt, including 17% VAT, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap that is of 6 mm thickness and above.

This mill has cut its buying price twice by a total of Yuan 130/mt on Thursday and Friday after a significant increase of Yuan 200/mt on Monday. Yonggang Group, also in Jiangsu province, cut its buying price by Yuan 100/mt again Thursday following a cut of Yuan 80/mt on Wednesday, which took the price of high quality heavy melting scrap with a thickness of 8 mm and above to Yuan 1,780/mt, including VAT, delivered to Zhangjiagang.

Changzhou-based Zenith Steel Friday lowered its buying price of heavy melting scrap at least 6 mm thick by Yuan 30/mt again after a cut of Yuan 100/mt on Thursday to Yuan 1,650/mt, including VAT, delivered to Changzhou.

Maanshan Iron and Steel, the biggest steelmaker in Anhui province, cut its buying price of plate cut-offs of 6 mm and above thickness by Yuan 100/mt to Yuan 1,770/mt Thursday, including VAT, delivered to Maanshan, Anhui province.

It was hard to say where scrap prices would go and it was not surprising to see a correction after a sharp rise, market participants said. "Scrap prices are likely to pick up again if domestic rebar prices resume an upward trend," said a trader based in Anhui province.

In Shanghai, the spot price of 18-25 mm diameter HRB400 rebar Friday was assessed at Yuan 2,770-2,790/mt theoretical weight, including VAT, down Yuan 120/mt week on week. The price, which has risen for five consecutive weeks, has been trending downwards since March 18.
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