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.