Local Chinese scrap market sees some improvement in activity

During the week ending August 2, local steel scrap prices in the Chinese market have mostly indicated a rising trend, though moving sideways in Liupanshui, Guizhou, while transaction activity in the overall market has improved but is still on the slack side. Average scrap prices in China's main markets are presented in the table below.

Scrap prices in China have received support from the rising trend seen in domestic finished steel and semi-finished steel prices, while transaction activity has improved though remaining on the sluggish side. Meanwhile, hot weather conditions and rainfall have negatively impacted scrap supply, providing a certain degree of support for scrap prices. Moreover, environmental protection examinations at major Chinese steel producers will likely boost domestic finished steel prices, which would also exert a positive impact on scrap prices. It is expected that scrap prices in the Chinese domestic market will continue their rising trend in the coming week.

The above prices include 17 percent VAT

$1 = RMB 6.64