During the week ending December 2, local steel
scrap prices in the Chinese market have mainly indicated a downward movement, though with a stable trend seen in eastern
China, while transaction activity in the domestic
scrap market has slackened somewhat and is now mostly at poor levels.
Average scrap prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
During the given week, the
scrap purchasing activities of steelmakers in eastern
China have remained at decent levels, providing support for the stable movement of
scrap prices in the eastern region, while the
scrap purchasing activities of steelmakers in other regions of the country have become sluggish, with a negative impact on local
scrap prices. Chinese steelmakers' finished steel inventories have risen, while the producers are also under pressure from tight liquidity, with both these factors contributing to the downward pressure on
scrap prices. Meanwhile, the weather has become colder in
China, resulting in sluggish demand for both finished steel and
scrap. It is expected that
scrap prices in
China will edge down further amid bearish sentiment in the market.