After dropping for five consecutive weeks, ferrous scrap prices in eastern China remained stable for the second week following the recent increase in domestic rebar and seaborne iron ore prices.
Platts assessed heavy melting scrap 6 mm and above at Yuan 990/mt ($153/mt), including 17% value added tax, delivered to Zhangjiagang, Jiangsu province, on Thursday, unchanged from a week earlier.
Jiangsu Shagang Group, the largest scrap user in China, kept its buying price unchanged, a company source said.
Shagang will pay Yuan 990/mt, including 17% VAT, delivered to Zhangjiagang, Jiangsu province, for heavy melting scrap of 6 mm and above thickness.
Yonggang Group, also based in the same province, kept its prices of high quality heavy melting scrap at least 8 mm thick unchanged at Yuan 1,050/mt, including VAT, delivered to Zhangjiagang, Jiangsu province.
Maanshan Iron and Steel or Magang, the biggest steel producer in neighboring Anhui province, maintained its buying price for plate cut-offs 6 mm and above at Yuan 1,040/mt, including VAT, delivered to its mill.
Scrap prices might stabilize in the near term as domestic rebar and spot iron ore rise, according to market participants.
"Scrap prices might be little changed in the coming weeks when rebar and iron ore prices tick up," said a source from a mill in the region. This was echoed by a trader based in Anhui province, who said that scrap prices at least would not trend downwards in the near future as mills held low stocks.
In Shanghai's rebar spot market, 18-25 mm diameter HRB400 rebar was assessed up Yuan 35/mt week on week at Yuan 1,720-1,730/mt theoretical weight Thursday, up for the second straight week since November 6.
Platts 62%-Fe IODEX Thursday inched up $0.95/dmt week on week at $40.30/dmt CFR China.
