Eastern China ferrous scrap prices rose Yuan 100/mt ($15.20/mt) as steelmakers hiked buying prices to compete against induction furnaces for sellers. But as of Friday, some of the gains gave way, on a weak outlook for steel demand.
S&P Global Platts assessed heavy melting scrap at least 6 mm thick at Yuan 1,390/mt delivered to Zhangjiagang, Jiangsu province, up Yuan 100/mt from last Wednesday, when it was last assessed.
Jiangsu Yonggang led other mills in the region in raising prices by Yuan 50/mt Sunday due to a need to restock. Jiangsu Shagang, Maanshan Iron & Steel and Zenith Steel followed Tuesday, increasing by Yuan 100/mt to Yuan 1,390/mt, Yuan 1,440/mt and Yuan 1,350/mt respectively, all on a delivered basis and including VAT.
Shagang's and Zenith's prices were for HMS with a thickness of 6 mm and above, and Magang's was for plate cutoffs 6 mm and up.
On Friday, Yonggang lowered its buying price by Yuan 20/mt to Yuan 1,410/mt delivered to Changzhou. A company source said the adjustment was because the mill had bought sufficient volumes and the outlook for steel demand was weak.
A trader in Anhui province said steelmakers were adjusting prices on a need-to basis. If steel margins are profitable, buying prices are adjusted upward; and if not, they are lowered.
"Raw material prices are still high if you look at what steel products are selling for," he said. "Profits are marginal at the moment."
In Shanghai, spot prices of 18-25 mm diameter HRB400 rebar were assessed Friday at Yuan 2,020-2,050/mt theoretical weight and including VAT, down Yuan 10/mt from the last assessment on Wednesday.
