Scrap steel prices rose first and then fell

In the past two weeks, domestic scrap steel prices rose first and then fell. Merchants were more cautious in their operations, base inventories remained low, and the arrival and consumption of steel companies decreased to varying degrees. Compared with the previous period, the average purchase price of scrap steel by key steel companies was 4 yuan/ton for heavy scrap steel, 13 yuan/ton for medium scrap steel, and 8 yuan/ton for general scrap steel.
During the May Day holiday, the transaction of construction steel was slightly quiet, downstream demand was still weak, the scrap steel market was also flat, and the effective circulation resources in society were still tight, which made the arrival volume of some steel companies less than the consumption, and the inventory dropped significantly, which supported the scrap steel price. However, affected by the market conditions, steel companies are very cautious in adjusting prices. In addition, the use of scrap steel for smelting still has no obvious cost-effectiveness advantage over molten iron, and the power for scrap steel price increases is insufficient. Steel companies mostly adopt the strategy of stabilizing prices and waiting and operating with low inventory to cope with market changes. On the whole, it is expected that the domestic scrap steel market will be stable and consolidated in the short term.
The scrap steel market in East China fluctuated narrowly, merchants were in a wait-and-see mood, and the market trading activity was low. The purchase price of heavy scrap steel of Nangang was 2,455 yuan/ton, an increase of 30 yuan/ton; the purchase price of heavy scrap steel of Shagang was 2,450 yuan/ton; the purchase price of heavy scrap steel of Xingcheng Special Steel was 2,510 yuan/ton; the purchase price of heavy scrap steel of Magang was 2,200 yuan/ton, an increase of 50 yuan/ton; the purchase price of heavy scrap steel of Tongling Fuxin was 2,460 yuan/ton, a decrease of 20 yuan/ton; the tender price of steel chip briquette of Shandong Steel and Laigang was 2,365 yuan/ton, an increase of 30 yuan/ton; the purchase base price of heavy scrap steel of Ningbo Steel in May was 2,182 yuan/ton, the same as the price in April.
The scrap steel market in Central China was weak, merchants had difficulty in receiving goods, and the shipment situation was not ideal. The arrival volume of steel enterprises still did not increase significantly after the May Day holiday. Angang’s purchase price for heavy scrap steel is 2,570 yuan/ton; Wugang’s purchase price for heavy scrap steel is 2,680 yuan/ton; Liangang’s ex-factory price for heavy scrap steel is 1,969 yuan/ton, 50 yuan/ton less; Xianggang’s ex-factory price for special briquette scrap steel is 2,150 yuan/ton, 20 yuan/ton less; Wuhan Iron and Steel’s purchase price for low-sulfur briquette scrap steel is 2,470 yuan/ton, 20 yuan/ton less; Henggang’s ex-factory price for heavy scrap steel is 2,040 yuan/ton, 20 yuan/ton less.
Scrap steel prices in South China fluctuated, electric arc furnace steel companies suffered losses, steel companies’ willingness to reduce production increased, and demand for scrap steel decreased. The purchase price of heavy scrap steel of Sangang Minguang is 2430 yuan/ton, an increase of 30 yuan/ton; the ex-factory price of heavy type II scrap steel of Shaoguan Iron and Steel is 2310 yuan/ton, a decrease of 40 yuan/ton; the purchase price of first-grade carbon steel scrap steel (shearing material) of Angang Lianzhong is 2490 yuan/ton.
The scrap steel market in the southwest region is stable, the market resources are in short supply, the arrival of steel enterprises is general, and some steel enterprises have begun to reduce production. The tax-free price of heavy scrap steel of Chongqing Iron and Steel is 2150 yuan/ton; the purchase price of briquetted scrap steel of Kunming Iron and Steel is 2350 yuan/ton.
The scrap steel price in the northwest region is stable and declining, merchants are cautious and wait-and-see, and the operation is fast in and out, and the arrival volume of steel enterprises basically meets the daily consumption. The purchase price of heavy scrap steel of Xining Special Steel is 2090 yuan/ton; the purchase price of medium-sized scrap steel of Jiugang is 2200 yuan/ton, a decrease of 80 yuan/ton.
The scrap steel market in Northeast China is operating stably, and market resources are still in short supply. Steel companies have a certain need to replenish inventory after the May Day holiday. The purchase price of heavy scrap steel of Jianlong Xigang (Yichun area) is 2,328 yuan/ton; the purchase price of heavy scrap steel of Angang is 2,543 yuan/ton; the purchase price of heavy scrap steel of Fushun Special Steel is 2,560 yuan/ton; the purchase price of heavy scrap steel of Linggang is 2,360 yuan/ton, a decrease of 40 yuan/ton.
The scrap steel market in North China is fluctuating and adjusting, and merchants are bearish on the market outlook, and the speed of shipment is accelerating. The purchase price of heavy scrap steel of Shougang Qiangang is 2,570 yuan/ton, a decrease of 40 yuan/ton; the purchase price of heavy second-class scrap steel of Tianjin Steel Pipe is 2,590 yuan/ton, an increase of 30 yuan/ton; the purchase price of heavy second-class scrap steel of Baosteel is 2,466 yuan/ton; the purchase price of crushed materials of Taigang is 2,300 yuan/ton; the tax-free price of heavy scrap steel of Hegang Shigang is 2,350 yuan/ton