It is reported that some leading steel mills in East China have continuous lowered scrap purchase prices in recent two days since traders' purchase price is relatively lower, with latter's price prevailing at some CNY 3,200 per tonne to CNY 3,300 per tonne in Zhejiang.

    Steel mills in Jiangsu also plan to cut their current CNY 3,500 per tonne to CNY 3,600 per tonne purchase price in line with the market price trend. Traders now suffer loss of nearly CNY 1,000 per tonne due to their high priced stockpiles in earlier period. Concluded transactions are scarce, with most trades are hand to mouth buying.

    Jiangsu Shagang yesterday lowered scrap purchase price by CNY 100 per tonne, pushing latest prices to CNY 3,670 per tonne the most for charging quality scrap and CNY 3,570 per tonne for No 3 heavy scrap.

    Xingcheng Special Steel pulled down prices by CNY 100 per tonne, leaving latest prices at CNY 3,750 per tonne for charging quality scrap and CNY 3,690 per tonne for heavy scrap.

    Changzhou Zhongtian cut prices by CNY 100 per tonne with latest prices offered at CNY 3,600 per tonne for charging quality scrap; Suzhou Steel lowered price by CNY 50 per tonne, with latest prices quoted at CNY 3,680 per tonne for charging-quality scrap; Nantong Baori slashed price by CNY 80 per tonne, leaving latest price to CNY 3,500 per tonne for heavy scrap, equivalent to some CNY 3,620 per tonne delivery to mill.

    Wuxi Xuefeng lowered scrap purchase price by CNY 50 per tonne with latest price goes at CNY 3,650 per tonne for charging quality scrap; Shandong Laiwu Steel trimmed price by CNY 50 per tonne and price for heavy scrap stands at CNY 3,840 per tonne the most; Qingdao Steel lowered price by CNY 50 per tonne, leaving latest price to CNY 3,760 per tonne for heavy scrap.

    Most distributors hold sizeable stocks before the price fall in third quarter due to their speculative hoarding behavior in earlier period, and they are not eager to rush out stocks at the beginning of the downtrend. However, most of them suffered a lot at the moment and starts to boost sales.

    Currently, scrap price in East China averages CNY 3,600 per tonne with price for rebar goes at CNY 4,900 per tonne. Price gap between scrap and rebar in local remains at CNY 1,200 per tonne to CNY 1,300 per tonne.