China's largest ferrous scrap consumer Jiangsu Shagang Group, cut its buying price for heavy melting scrap by Yuan 30/mt ($4.60/mt) on December 30 and another Yuan 30/mt on January 1, according to a company source Tuesday.
After the adjustment, Shagang will pay Yuan 2,590/mt ($398/mt) including 17% value added tax, delivered to Zhangjiagang, for heavy melting scrap with a minimum width of 6 mm, the source said.
These were the mill's second and third consecutive reduction since December 28.
The steelmaker had so far decreased its buying price for heavy melting scrap by a total of Yuan 90/mt since December 28, in tandem with the fall in domestic rebar prices.
Reflecting the weakening domestic market, Shagang on January 1 also trimmed its rebar ex-works prices by Yuan 350/mt for the January 1-10 period, taking its price for 16-25 mm diameter HRB400 rebar to Yuan 4,650/mt including 17% VAT.
