Three eastern Chinese steelmakers increased buying prices for ferrous scrap Tuesday, after Jiangsu Yonggang made the first move Sunday.
Jiangsu Shagang, Maanshan Iron & Steel and Zenith Steel all announced Yuan 100/mt ($15.20/mt) hikes effective Wednesday, according to a company source and local media.
After the adjustment, Shagang's buying price will be Yuan 1,390/mt delivered to Zhangjiagang for heavy melting scrap with thickness of 6 mm and above, including VAT.
Shagang is China's biggest scrap buyer and the increase was aimed at bringing prices in line with market levels, a company source said. Magang's and Zenith Steel's prices post-adjustment would be Yuan 1,440/mt for plate cut-offs at least 6 mm thick delivered to Maanshan and Yuan 1,350/mt delivered to Changzhou for HMS of at least 6 mm thickness, according to local media reports. Both companies couldn't be reached for confirmation.
Scrap buying prices have ticked higher mainly because traders have been selling at a loss and on upward adjustments to buying prices by small-scale induction furnaces in eastern and southern China.
