Local Chinese steel scrap market sees improved buying activity

During the given week, domestic steelmakers have cut their ex-works prices for finished steel and have put downward pressure on scrap prices in order to limit their production costs. Meanwhile, semi-finshed steel prices in China have also indicated significant decreases, negatively impacting scrap prices. Traders have cut their sales prices for scrap in order to bring in cash, thereby stimulating transaction activity. It is thought that Chinese steelmakers may continue to lower their purchase prices for scrap. It is expected that scrap prices in the Chinese domestic market will remain on a downtrend in the coming week as bearish sentiment prevails among scrap traders.