During the week ending April 7, local steel scrap prices in the Chinese market have indicated declines in some regions, with prices remaining stable in other regions. Transaction activity in the overall domestic market has been at decent levels. Average scrap prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, as the rebound in finished steel prices did not last long and as iron ore prices have declined sharply, scrap prices have softened in some regions of China. Although demand in the scrap market has recovered to decent levels, the downtrend in the iron ore market will likely negatively impact activity in the scrap market. Steelmakers are seeking to pay lower prices for scrap, exerting strong pressure on scrap traders. It is expected that scrap prices in the Chinese domestic market will move down further in the coming week.