Steel mills in Eastern China cut ferrous scrap buying prices as domestic rebar prices and seaborne iron ore prices retreated after a sharp rise, market participants said Monday.
Jiangsu Shagang Group, the largest scrap user in China, on Monday lowered its buying price by Yuan 20/mt ($3/mt) after the latest hike on March 8, a company source said.
The mill previously increased its buying price by Yuan 200/mt after returning from the Lunar New Year break.
Now Shagang will pay Yuan 1,240/mt ($191/mt), including 17% value-added tax, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap at least 6 mm thick.
Platts assessed last Friday 18-25-mm diameter HRB400 rebar in Beijing at Yuan 2,240-2,250/mt ($345-346/mt) ex-stock actual weight, including 17% VAT, down Yuan 95/mt ($15/mt) from Thursday.
Platts 62% Fe IODEX Friday was assessed down $1.15/dry mt from Thursday at $56.20/dmt CFR China.
Yonggang Group, also in Jiangsu province, followed Shagang's lead cutting its buying price by Yuan 20/mt, which took the price of high quality heavy melting scrap at least 8 mm thick at Yuan 1,300/mt, including VAT, delivered to Zhangjiagang.
Changzhou-based Zenith Steel on Monday also cut its buying price by Yuan 20/mt, taking the price of heavy melting scrap at least 6 mm thick to Yuan 1,200/mt, including VAT, delivered to Changzhou.
Maanshan Iron and Steel (Magang), the biggest steel producer in Anhui province, held its buying price of plate cut-offs at least 6 mm thick unchanged at Yuan 1,310/mt, including VAT, delivered to Maanshan, Anhui province, to await more clarity, a source with the company said.
