During the week ending August 19, prices in the main local steel scrap markets in China have indicated a slight downtrend, while overall transaction activity has remained slack against the backdrop of rainy weather around the country. Average scrap prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, domestic steelmakers have been exerting downward pressure on scrap prices due to the low levels of prices of finished steel and raw materials. However, traders have been unwilling to conclude deals given the weakness of scrap prices. Prices of rebar futures, iron ore futures and coke futures in China have lately been moving on a soft trend, impacting finished steel prices and causing increased pessimism among steel market players. It is expected that local scrap prices in China will continue to follow a slight downtrend in the coming week.