UMETAL-CHINA, Though scrap market prices in China drop as steel market prices continue falling, Northeast China's scrap prices still remain stable. Currently, scrap buying prices are set at RMB2,900-3,080/tonne 17% VAT included, delivered mills in locally largest mills; RMB2,550-2,650/tonne 17% VAT excluded in small mills and RMB2,400-2,500/tonne 17% VAT excluded in traders.
Due to tight market resources in this area, scrap market prices still keep strong. Many steel mills will continue to store up stocks in order to guarantee daily production during the upcoming Chinese New Year's Day. So, it is estimated that local scrap market prices will remain firm or go up gently in the near term. (US$ 1=RMB6.8278; contributing by Yang Jia; editing by Jerry Bai)