The ferrous scrap market in eastern China held stable this week, as most steelmakers maintained buying prices, although traders difficulty in obtaining scrap from collectors.
Platts assessed heavy melting scrap 6 mm and above thick unchanged on the week at Yuan 2,230/mt ($362/mt), delivered to Zhangjiagang, Jiangsu province, including 17% value-added tax.
Jiangsu Shagang Iron & Steel held its buying price unchanged for the sixth week at Yuan 2,240/mt delivered, leading a major trader that is its regular supplier to raise offers by Yuan 20/mt to match its price.
The trader had lowered prices by Yuan 20/mt last week in anticipation of a price drop by Shagang, which did not materialize.
"Current [low] prices hardly make it attractive for collectors to go out and collect scrap," a source at a major trader said.
Other steelmakers also bought material at as low as Yuan 2,160-2,180/mt.
Scrap buyers at mills in eastern China said they would follow Shagang's direction in making bids, and that scrap had become less attractive in light of recent falls in iron ore prices.
But as there was an expectation in the market that finished steel prices would recover slightly in July, and most participants said they did not foresee a further drop in the scrap price.
