Continued stability in eastern China scrap market

SteelOrbis Shanghai During recent weeks, the scrap market in eastern China continued to maintain its overall stable trend, and the predictions are that the weeks ahead will also be characterized by stability. At present, heavy melting scrap prices in Zhangjiagang, Jiangsu Province, are around RMB 2,300-2,400/mt ($297-310/mt), while those in Jiangyin are at RMB 2,310/mt ($298/mt). Meanwhile, high quality scrap prices in Wuxi and Jiangyin are at RMB 2,380/mt ($307/mt). The purchase prices of mills in Shanghai have also been stable for nearly two months now. As for the purchase prices for March, the details are as follows: The purchase price of busheling scrap is RMB 1,840/mt ($238/mt), while that of heavy melting scrap is RMB 1,810/mt ($234/mt). The medium-sized melting scrap (1) purchase price is RMB 1,780/mt ($230/mt), medium-sized melting scrap (2) costs RMB 1,750/mt ($226/mt); small-sized melting scrap is at RMB 1,710/mt ($221/mt); gradeless scrap costs RMB 1,610/mt ($208/mt), while the purchase price of light scrap is RMB 1,415/mt ($183/mt). Meanwhile, the price of iron scrap is RMB 1,000/mt ($129/mt). All these prices exclude taxes. According to the present market situation, the steel market in eastern China is continuing at a high level and is seeing stable movement on the whole, and this provides strong support for the scrap market prices. Furthermore, the rising pig iron prices (e.g. RMB 2,500/mt ($323/mt) in the Tangshan and Shandong markets) will also affect the scrap performance. To sum up, for the coming weeks the scrap market prices are expected to maintain a steady trend with a probable slight increase.