The Domestic Scrap Market is Strong First and Then Weak

Information Statistics Department of China Scrap Steel Application Association

Last week, the mainstream domestic scrap steel market prices were stable, some regions were fine-tuned, merchants were unstable, and the wait-and-see mood was strong. Some steel mills' scrap demand declined slightly, the enthusiasm for receiving goods weakened, and the arrival situation was average.

Compared with the previous week, the average purchase price of scrap for key steel companies has increased by RMB 8/ton for heavy scrap, and by RMB 24/ton for medium-sized scrap, and the price of scrap for general materials remains unchanged.

Recently, the futures market fluctuated upwards. The spot market is not willing to follow the rise. Demand is still weak. Although output has decreased, inventories are still at a high level. In the off-season market, it is difficult for market transactions to increase in volume, resulting in weak scrap price increases.

Last week, transportation in Hebei, Shanxi and other places was controlled. Many steel mills halted production and scrap collection for 2 to 5 days. The consumption of steel mills decreased significantly.

Last week, the production restrictions of iron plants were gradually lifted and vehicles resumed. Demand for scrap steel increased sharply after the furnace opened. The weak supply and demand pattern will be eased. It is expected that the scrap steel market will remain weak and fluctuate in the short term, and there is little room for price fluctuations.

The scrap steel market in East China continued to operate steadily, with increased blast furnace maintenance and electric furnace production reductions in steel mills, and scrap demand declined slightly. The purchase price of Nangang's heavy scrap steel is 3730 yuan/ton; the purchase price of Shagang's heavy scrap steel is 3,830 yuan/ton; Xingcheng Special Steel's heavy scrap purchase price is 3860 yuan/ton; Maanshan Iron and Steel's heavy scrap purchase price is 3660 yuan/ton; Tongling The purchase price of Fuxin's heavy scrap steel is 3630 yuan/ton; the bidding price of Laiwu Steel's rebar briquettes is 4160 yuan/ton, an increase of 20 yuan/ton; the purchase price of Xiwang Metal's fine heavy scrap steel is 3810 yuan/ton, an increase of 50 yuan/ton ; Ningbo Iron & Steel's June heavy scrap purchase base price was 3390 yuan/ton.

The scrap steel market in Central China is operating steadily and on the strong side, and resources are relatively scarce. There are not many steel mills arriving, and the merchants are bullish. The purchase price of Anyang Iron and Steel's heavy-duty scrap is 3790 yuan/ton; the purchase price of Wugang's heavy-duty scrap is 3,920 yuan/ton, which is increased by 120 yuan/ton; the purchase price of the first-level qualified materials of Valin Henggang is 3560 yuan/ton; The block purchase price is 3950 yuan/ton.

Scrap steel prices in southern China continue to consolidate at a high level, steel mills are not profitable, prices are difficult to rise, and merchants are increasingly willing to drop prices. Sangang Minguang's heavy scrap purchase price is 3860 yuan/ton; Shaoguan Steel's heavy-duty second-class scrap price is 3460 yuan/ton in cash, an increase of 20 yuan/ton.

Scrap steel prices in the southwestern region have gone up and down, market resources are tight, competition is fierce, and the arrival of steel mills and bases is average. The heavy-duty No. 1 scrap price of Chongqing Iron & Steel Co., Ltd. is 3540 yuan/ton excluding tax, increased by 30 yuan/ton; Kunming Iron and Steel's heavy-duty scrap purchase price is 3857 yuan/ton, which is lowered by 80 yuan/ton.

The scrap steel market in Northwestern China is operating steadily and strongly, with steel mills generally arriving, and companies with large inventory declines have strong demand for replenishment. The purchase price of Xining Special Steel's medium-sized first qualified material is 3650 yuan/ton, an increase of 100 yuan/ton; the purchase price of Jiuquan Steel's heavy scrap steel is 3531 yuan/ton, an increase of 90 yuan/ton.

The price of scrap steel in Northeast China is weak, and the shortage of market resources has temporarily eased. Steel plants are still available and stock is general. The purchase price of heavy scrap is 3660 yuan per ton.  The purchase price of Jianlongxi heavy scrap steel is 3665 yuan per ton.  The purchase price of AISC heavy scrap is 3745 yuan / ton.  Fushun special steel heavy scrap purchase price is 3690 yuan / ton.

The main market of scrap steel in North China is stable. Most steel plants stop production and mining, and the consumption of scrap steel has declined significantly. Tianjin heavy scrap steel pipe purchase price is 3760 yuan / ton.  The purchase price of Shougang Qiangang heavy scrap is 4080 yuan / ton, down 50 yuan / ton. The purchase price of heavy type II scrap in Baotou Steel is CNY 3889 per ton.  The purchase price of heavy scrap in Taiyuan Iron and Steel Co., Ltd. is CNY 3450 per ton.