Large and medium-sized steel mills in eastern China Tuesday cut their ferrous scrap buying prices again, as Chinese domestic steel prices continued to trend lower.
This made it the fifth time it has reduced its price in May.
Jiangsu Shagang Group, the largest scrap consumer in China, Tuesday said it would lower its buying price of heavy melting scrap of 6mm thickness and above by Yuan 30/mt ($5/mt) following the most recent cut of Yuan 100/mt on May 11, a company source said.
As a result, Shagang will pay Yuan 1,370/mt ($209/mt), including 17% VAT, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap of 6mm thickness and above. The mill has cut its buying price by a total of Yuan 320/mt in May.
In Beijing's retail market on Monday, Platts assessed 18-25mm diameter HRB400 rebar at Yuan 2,105-2,125/mt ($321-$324/mt) ex-stock actual weight, including 17% VAT, down Yuan 200/mt ($31/mt) from Friday.
Yonggang Group, also in Jiangsu province, followed suit, also cutting its buying price by Yuan 30/mt Tuesday, taking the price of high quality heavy melting scrap of 8mm thickness and above at Yuan 1,430/mt, including VAT, delivered to Zhangjiagang.
Changzhou-based Zenith Steel lowered its buying price of heavy melting scrap at least 6mm thickness by Yuan 30/mt to Yuan 1,330/mt, including VAT, delivered to Changzhou.
Maanshan Iron and Steel, or Magang, the biggest steelmaker in Anhui province, Tuesday cut its buying price of plate cut-offs of 6mm thickness and above by Yuan 30/mt after a brief hiatus to Yuan 1,420/mt, including VAT, delivered to Maanshan, Anhui province.
