China’s scrap steel prices remain stable with some increases
Last week, domestic scrap steel prices rose steadily, merchants were eager for price increases, shipments slowed down, steel companies’ arrivals decreased, and inventories fell slightly.Compared with the previous week, the average purchase price of scrap steel by key steel companies was 7 yuan/ton higher for heavy scrap steel, 4 yuan/ton higher for medium scrap steel, and 13 yuan/ton higher for general scrap steel.
Recently, the price of finished products has fluctuated upward, and the market sentiment has improved, but demand is difficult to increase, and terminal purchases are still cautious. The profitability of steel companies is not ideal, and they are very strict in controlling the cost of raw material procurement, which has suppressed the rise in scrap steel prices. At present, it is difficult to recycle raw materials in the freight yard, and merchants are holding back goods for price increases. The arrival volume of some steel companies is less than the daily consumption. As the “May Day” holiday approaches, the demand for steel companies to replenish inventory increases, which is good for scrap steel prices. On the whole, in the short term, my country’s scrap steel prices will be stable and strong. If there is no macro-good news released after the “May Day” holiday, the scrap steel market may fluctuate weakly.
