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 Secondly.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 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 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 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 daysAsian Metal Copyright