Good transaction activity in Chinese domestic scrap market

During the week ending April 26, local steel scrap prices in the Chinese market have indicated further increases, while transaction activity in the overall market has been at quite good levels. Average scrap prices in China's main markets are presented in the following table.

During the given week, domestic steel producers have increased their production and so they have been purchasing more scrap even though suppliers have increased their prices. However, the speculative purchases in the steel market have eased to a certain degree, resulting in corrections in some finished steel product prices. It is thought that scrap prices in the Chinese domestic market will likely indicate corrections in the coming week.

The above prices include 17 percent VAT
 
$1 = RMB 6.49