During the week ending January 27, local steel scrap prices in the Chinese market have indicated a decreasing trend, while transaction activity has remained slack. Average scrap prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, local steelmakers have lowered their purchase prices for scrap, resulting in the soft trend of scrap prices in the Chinese domestic market. Meanwhile, some scrap traders have cut their sales prices ahead of the Spring Festival in order to reduce their inventory levels. Approaching the Spring Festival, some steelmakers will likely step up their scrap purchases in order to replenish their stocks, though they are unlikely to purchase at increased price levels. It is thought that scrap prices in the Chinese domestic market will likely move on a stable trend in the coming week, though some slight downticks may also be seen.