During the week ending September 16, prices in the main local steel scrap markets in China have continued their downward movement, while overall transaction activity has remained poor. Average scrap prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
With the declines seen in semi-finished steel and finished steel prices, domestic steelmakers' profit margins have been shrinking and some high-cost electric arc furnaces have been idled, causing a decrease in demand for scrap. Iron ore import prices have lately indicated a slight recovery, while at the same time traders in some regions of the country have tried to increase their finished steel sales prices, which will likely provide a certain degree of support for local scrap prices. Nevertheless, it is thought that scrap prices in the Chinese domestic market will likely follow a slight downtrend in the coming week.