Metallurgists in China reduced purchase prices for scrap metal

Steel mills in China have announced that the purchase price of scrap metal has been reduced to RMB 1,200 (approximately US $ 190) per tonne.

The reason for the decline in purchase prices was a record drop in prices for steel reinforcement in the domestic market of the PRC.

Traders anticipate further declines in scrap prices in China and see no reason for any recovery anytime soon.

As the National Bureau of Statistics of the People's Republic of China reported today, steel production in China fell by 3 percent in September in an annual comparison against the background of falling prices to 30-year lows.

Nevertheless, analysts at Prestige Economics believe that in 2016 China may see an increase in steel production due to an increase in exports of metal products.

The measures to stimulate domestic demand and the weak yuan will further boost overseas sales of Chinese steelmakers, Prestige Economics reported.