Influenced by negative economic news and the European debt crisis, both the futures and spot market prices of rebar in China dropped down in the past week. Accordingly, medium and small mills in China adjusted their scrap purchasing prices in a downward direction. Subsequently, as the financial markets recovered confidence somewhat, steel prices stopped their declining movement and scrap purchasing prices became stable. Meanwhile, scrap market prices received support from the lack of supply in the market.
Heavy melting scrap (HMS) prices have remained unchanged in the main markets. Chinese heavy scrap average price is reported at $579/mt.
Traders in China are cautious about purchasing scrap in the short term. The purchasing prices of steel mills continue to support market prices, while the negative economic news appears to have been digested by the market. It is thought that in the coming week there will be little room for downward movement in the Chinese scrap market.