During the week ending July 31, steel scrap prices in the Chinese market have declined significantly, especially in eastern and northern China. At present, the average price of heavy melting scrap (HMS) in the main markets in China stands at RMB 2,830/mt ($447/mt), down $16/mt as compared to the previous week.
Overall, the prospects do not appear very bright for the domestic steel market. At the same time, steel mills are also reducing their purchase prices for scrap. With their scrap inventories relatively plentiful, domestic steel mills are not likely to hike their purchase prices in the short term. It is expected that in the coming week steel scrap prices in China will continue their soft trend.