Eastern China steel mills have cut ferrous scrap prices.
Source is Singapore (Platts)–27 Aug 2015
Jiangsu Shagang Group, the largest scrap user of China, on Thursday cut its buying price by Yuan 40/mt ($6/mt) in view of a recent drop in rebar prices, a company source said.
After the adjustment, Shagang will pay Yuan 1,330/mt ($208/mt), including 17% value added tax, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap 6 mm and above.
“With the bearish outlook on domestic steel markets, I think scrap prices are likely to repeat the previous low levels,” said a source from a mill in the region, adding that small induction furnace mills had successively cut their buying prices earlier when rebar prices began to fall.
All of this sends a lower traffic signal for railroad traffic.
Most analysts have failed to predict this rapid a fall in scrap prices that two years ago were in the $360 to $400 approximate range per metric tonne.