SHANGHAI Chinese steel mills remain on the sidelines of the international scrap market, unable or unwilling to pay higher prices.
"Offers (for an 80/20 mix of U.S. No. 1 and No. 2 heavy melting scrap) stood high at $435 to $440 per tonne c.f.r. China, much higher than what we can afford," a source at Chinas Jiangsu Shagang Group Co. Ltd. said.
The steelmakers bid was about $410 per tonne c.f.r. "We are still relying mainly on our stocks and domestic scrap," she said.
Japanese HMS 1&2 (80:20) is currently being offered at $420 to $425 per tonne c.f.r., while a cargo of Mexican HMS 1&2 (80:20) was offered at $430 per tonne c.f.r.
Few imports have been reported, a steel mill source in Shanghai said.
Heavy scrap prices in eastern China remained stable at 2,860 to 2,960 yuan ($455 to $471) per tonne March 6, unchanged from a week ago.
A version of this article was first published by AMM sister publication Steel First.