Decent transaction activity in Chinese domestic steel scrap market

During the week ending June 28, local steel scrap prices in the Chinese market have mostly indicated a slight uptrend, though remaining stable in Handan, Hebei and Jinan, Shandong, 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, transaction activity in the domestic scrap market has been at decent levels, providing support for scrap prices. Traders have increased their sales prices for scrap. In order to ensure sufficient stocks, steelmakers have accepted the price increases. Meanwhile, the recent rebounds in domestic prices of finished steel and semi-finished steel have also boosted scrap prices. However, the prospects for steelmakers' profitability are not great, and this is expected to exert some negative impact on scrap prices. It is thought that scrap prices in the Chinese domestic market will likely edge up slightly in the coming week.

The above prices include 17 percent VAT

$1 = RMB 6.64