During the week ending November 25, local steel
scrap prices in the Chinese market have indicated an overall downtrend, while transaction activity in the domestic
scrap market has improved and is now at decent levels.
Average scrap prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, the declines in
scrap prices have been caused by two main factors. Firstly, finished steel prices have moved down, putting pressure on steelmakers to reduce their costs and so they have been seeking to pay lower prices for
scrap. Secondly, iron ore prices have indicated significant declines, resulting in a weakening of confidence in the
scrap market.
Scrap traders have cut their sales prices, thereby attracting increased demand. It is expected that
scrap prices in the Chinese domestic market will continue their soft movement in the coming week, though with limited decreases anticipated as steelmakers will still have to purchase
scrap in order to meet their needs.