Ferrous scrap prices surged again in eastern China to a six-month high as domestic rebar prices soared over the course of a few days.
Platts assessed heavy melting scrap of 6 millimeter thickness and above at Yuan 1,260/mt ($194/mt), including 17% VAT, delivered to Zhangjiagang, Jiangsu province, up Yuan 100/mt ($15/mt) from a week ago.
Prices have reached their highest since September 18.
Jiangsu Shagang Group, the largest scrap user in China, Tuesday increased its buying price by Yuan 100/mt. The mill has increased its buying price by Yuan 200/mt since returning from the Lunar New Year break.
Shagang will now pay Yuan 1,260/mt, including VAT, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap of 6mm thickness and above.
Yonggang Group, also in Jiangsu province, Tuesday raised its buying price by a further Yuan 70/mt after an increase of Yuan 50/mt Monday.
Yonggang will buy high quality heavy melting scrap of 8mm thickness and above at Yuan 1,320/mt, including VAT, delivered to Zhangjiagang.
Changzhou-based Zenith Steel also raised its buying price Tuesday by Yuan 100/mt, according to market sources, taking the price of heavy melting scrap of at least 6mm thick at Yuan 1,220/mt, including VAT, delivered to Changzhou.
Maanshan Iron and Steel (Magang), the biggest steel producer in Anhui province, said it was raising its buying prices of plate cut-offs of 6mm thickness and above by Yuan 100/mt from Tuesday to Yuan 1,310/mt, including VAT, delivered to Maanshan, Anhui province.
Scrap prices might see a correction in the near future as rebar prices begin to trend downward due to a lack of buying, an Anhui-based trader said.
In Shanghai's rebar spot market, prices of 18-25mm diameter HRB400 rebar Friday were assessed at Yuan 2,210-2,250/mt theoretical weight, up Yuan 295/mt from a week ago.
