Jiangsu Shagang Group, China's biggest scrap buyer, cut buying prices Saturday for the raw material by Yuan 30/mt ($5/mt), in response to a slide in rebar prices, a company source said.
After the adjustment, Shagang will pay Yuan 1,130/mt, including 17% value added tax (VAT), delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap 6mm and above thick.
This was the steelmaker's first cut in November after lowering its buying prices by a total of Yuan 80/mt over the past month.
In Shanghai's rebar spot market, prices of 18-25mm diameter HRB400 rebar Friday were assessed down Yuan 55/mt on week to Yuan 1,870-1,880/mt theoretical weight.
"Scrap prices might keep stable in the near future as they have reached the record low. However, they are likely to further go down in view of the ailing steel market," said the source.
Yonggang Group, Changzhou Zenith Steel and Dongfang Special Steel also in Jiangsu province have been out of the market previously.
Maanshan Iron and Steel or Magang, the biggest steel producer in Anhui province, on Saturday lowered its buying prices of plate cut-offs at least 6mm thick by the same Yuan 30/mt to Yuan 1,180/mt, including VAT, delivered to Maanshan, Anhui province.
