The ferrous scrap market was stable in eastern China this week, in tandem with the finished steel and rebar futures markets, market participants said Friday.
Most traders were bearish, expecting further price cuts in the short term.
Platts assessed heavy scrap over 6 mm at Yuan 2,320/mt ($372/mt) delivered to Zhangjiagang city in Jiangsu province with value added tax, flat from last week.
"We are receiving fewer cargoes this week compared with the previous level of 9,000-10,000 mt/d," a source from Shagang Group, the largest scrap consumer in Jiangsu province said. Considering the stable rebar futures market over the week, the company kept its purchase price at Yuan 2,240/mt delivered for heavy scrap with thickness of 6 mm.
"Everyone is waiting to see the results of our order-placing meeting to be held on March 28," he said. The firm plans to purchase 2.5 million-3 million mt or more scrap altogether this year, excluding import volumes, higher than last year's 1.8 million-1.9 million mt, he added.
Most other steelmakers in eastern China have also kept their purchase prices unchanged this week.
Meanwhile, scrap traders pointed to the lukewarm finished steel market and tight credit. "Our scrap inventory is staying high at several thousand metric tons," a trader based in Anhui province said.
Another trader in Anhui province said he preferred to sell the cargoes on hand as quickly as possible, instead of waiting to see how the market moves. He said he chose to stabilize offers temporarily, while keeping a close eye on Shagang's order-placement meeting next week.
