Steel scrap market report July 2012

Scrap market had experienced the largest depreciation since August, 2011 in the past seven months. Domestic major mills declined prices by RMB110-640/t.Asian Metal Copyright Numbers are at RMB2,570-2,590t VAT included delivered for HMS in Fujian, and transaction price of the material is at RMB2,200t VAT excluded delivered in the market.Asian Metal Copyright Jiangsu-based mills keep purchasing prices of scrap at RMB2,650-3.670/t VAT included delivered for burden fines in Jiangsu. Numbers are at RMB2,570-2,590/t VAT included delivered for HMS in Fujian, and transaction price of the material is at RMB2,200/t VAT excluded delivered in the market. Values for HMS are at RMB2,430-2,450/t in Hebei, and at RMB2,380-2,400/t in Liaoning, both on VAT excluded delivered by cash payment. Reasons for depreciation are as follows:

Firstly, the price of steel declines, especially figures for building materials decrease significantly. For example, numbers of steel rebar dropped by RMB200-700/t in July, to RMB3,650-3,700/t VAT included.Asian Metal Copyright Jiangsu-based mills keep purchasing prices of scrap at RMB2,650-3.Asian Metal Copyright Steel market kept sluggish with large inventory, and downstream industry could not release demand in the short-term, thus the price of scrap declined further in high temperature and rainy days.

Secondly..Asian Metal Copyright Numbers are at RMB2,570-2,590t VAT included delivered for HMS in Fujian, and transaction price of the material is at RMB2,200t VAT excluded delivered in the marketAsian Metal Copyright