Decent transaction activity in Chinese domestic steel scrap market

During the week ending June 21, local steel scrap prices in the Chinese market have indicated a slight uptrend, while transaction activity in the overall market has been at decent levels. Average scrap prices in China's main markets are presented in the table below.

During the given week, the scrap purchasing activities of domestic steelmakers have been at good levels, providing a certain degree of support for scrap prices. Meanwhile, inventories on the scrap sellers' side have continued to decline, also exerting a positive impact on scrap prices. However, the traditional offseason in the finished steel market will negatively affect demand for scrap. It is thought that scrap prices in the Chinese domestic market will likely follow a stable trend in the coming week.

The above prices include 17 percent VAT

$1 = RMB 6.58