Local Chinese steel scrap market increases in some regions, stable in others

During the week ending August 8, steel scrap prices in the Chinese market have moved on a stable trend in a majority of regions, though prices in Tianjin, Nanchang and Zhangjiagang have increased, while transaction activity in the overall market has been at low-to-medium levels. Average scrap prices in China’s main markets are presented in the following table.

During the given week, most major steelmakers have kept their scrap purchase prices stable. However, due to environmental inspections, scrap supplies arriving in the market have decreased. Meanwhile, examinations of invoices by tax officials have slowed down transaction activities in the scrap market. Domestic finished steel prices have continued their upward trend, providing support for scrap prices. It is thought that scrap prices in the Chinese domestic market will likely move upwards in the coming week.

All prices are ex-warehouse and include 17 percent VAT.

$1 = RMB 6.70