Maanshan Iron and Steel or Magang, the largest steelmaker in eastern China's Anhui province, on Monday announced it was cutting its ferrous scrap buying price by Yuan 30/metric ton ($5/mt), a company source said.
The move followed the lead of Shagang which lowered its buying price by Yuan 30/mt on Friday in response to the drop in domestic rebar prices.
As a result, Magang will pay Yuan 1,740/mt ($269/mt), including 17% value added tax, delivered to Maanshan, Anhui province, for plate cut-offs 6 mm and above thick.
It was the mill's second cut since the previous drop of Yuan 100/mt on Thursday. The steelmaker had previously raised its buying price by a total of Yuan 400/mt during April 15-27.
In Shanghai, spot prices of 18-25 mm diameter HRB400 rebar Friday were assessed at Yuan 2,770-2,790/mt theoretical weight and including VAT, down by Yuan 120/mt on the week.
The prices, which had risen for five consecutive weeks, trended downward again since the last drop on March 18, 2016.
Jiangsu Shagang Group, the largest scrap user in China, Friday lowered its buying price by another Yuan 30/mt after a drop of Yuan 100/mt on Thursday.
Now Shagang will pay Yuan 1,690/mt, including 17% VAT, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap 6 mm and above thick.
