Heavy scrap sees overall price stability in China

SteelOrbis Shanghai In spite of the slight price fluctuation in the construction steel market, Chinese scrap market prices remained stable throughout week 46. On November 16, heavy melting scrap prices in Zhangjiagang were constant at RMB 2,000/mt ($245/mt), while those in Alashankou were also steady at RMB 1'810/mt ($230). Following the price trend of finished steel, the purchasing prices of heavy scrap by steel mills also saw a downward tendency. At present, the purchase prices of heavy melting scrap in Jiangsu Province are in RMB 2,000-2,100/mt ($254-267) range. Looking at the major mills in this province, the heavy melting scrap purchase prices of Shagang are at RMB 2,010/mt ($246), while those of Xingcheng Steel and some other steel mills are at RMB 2,060/mt ($262). Jiangsu Yonggang and Xicheng Steel took the initiative in lowering their heavy melting scrap purchasing prices by about RMB 20-40/mt ($3-5). The mainstream prices of heavy melting scrap in the southwestern and northwestern regions are at RMB 1,900-2,000/mt ($241-254), those in Alashankou are steady at RMB 1,810/mt ($230) due to bearish commercial activity. The prices of imported heavy melting scrap also saw stable movement with the price for Japanese imports at $285/mt CIF China. Since the overall steel market is on a downward trend, heavy scrap prices are also expected to see a slight decrease over the next week.