Ferrous scrap prices in eastern China fell for the first time since late December this week, after hitting a six-month high the previous week, due to the drop in domestic rebar and seaborne iron ore prices, market participants said.
Platts assessed heavy melting scrap 6 millimeters and above thick Friday down by Yuan 50 ($8) week on week at Yuan 1,210/mt, including 17% value added tax, delivered to Zhangjiagang, Jiangsu province.
Before falling back this week, these prices had increased by a total of Yuan 200/mt after the Lunar New Year holiday (February 7-13).
Jiangsu Shagang Group, the biggest scrap consumer in China, on Wednesday shaved its buying price by Yuan 30/mt after a cut of Yuan 20/mt on Monday.
As a result, Shagang will pay Yuan 1,210/mt, including VAT, delivered to Zhangjiagang, Jiangsu province, for purchasing heavy melting scrap 6 mm and above thick.
On the same day, another two Jiangsu-based mills Yonggang and Zenith Iron and Steel both lowered their scrap buying prices by Yuan 30/mt after a cut of Yuan 20/mt on Monday, as Platts reported.
Meanwhile, Maanshan Iron and Steel (Magang), the largest steel producer in Anhui province, on Friday lowered its buying price of plate cut-offs 6 mm and above thick by Yuan 50 to Yuan 1,260/mt, including VAT, delivered to Maanshan, Anhui province, according to scrap traders.
In spite of some rebound in rebar prices since Thursday, mills did not react immediately by raising their buying prices due to sufficient stocks and an uncertain short-term market outlook, an east China scrap trader said Friday.
In Shanghai's rebar spot market, prices of 18-25 mm diameter HRB400 rebar were assessed at Yuan 2,190-2,240/mt theoretical weight Friday, down Yuan 15 from a week earlier.
Platts 62% Fe IODEX Thursday was assessed at $56/dry mt CFR China, down $1.35 from a week earlier.
