During the week ending July 18, further decreases have been observed in the Chinese steel
scrap market. As of July 18, the average price of heavy melting
scrap (HMS) in
China is standing at RMB 3,083/mt ($489/mt), declining by $5/mt compared to the previous week.
Local scrap prices in China can be viewed in the SteelOrbis price reports section.
Under pressure from the ongoing price declines in the domestic steel market, small steel producers have started to reduce or halt production. As a result, their consumption of
scrap has declined and so traders have to cut their prices in order to conclude deals. Amid the sluggish economic backdrop, it is difficult to foresee an improvement in the steel
scrap market.
Scrap prices in the Chinese domestic market are expected to slide down further in the coming week.