In the first few days after the Spring Festival holiday, the Chinese steel scrap market has been quiet with no changes seen in prices as some traders have not yet returned to the market.
At present, hot melting scrap (HMS) prices in China stand at an average of RMB 3,467/mt ($549/mt), unchanged from the last week before the holiday. Prices in the local markets in China can be viewed in the SteelOrbis price reports section.
On the bright side, scrap demand in China is expected to recover in the short term as domestic steel mills who are short of scrap materials have generally resumed production. However, most traders are still on the holiday and are expected to return to the market after the Lantern Festival on February 6. This is the main reason for the current lackluster market situation and extremely low booking activity. Due to uncertainty in the market, the scrap suppliers who have returned to the market are fairly cautious for the time being.