Low supply and decent demand in local Chinese steel scrap market

During the week ending August 11, local steel scrap prices in the Chinese market have continued to rebound, though remaining stable in Handan, Hebei, while transaction activity in the overall market has remained at decent levels. Average scrap prices in China's main markets are presented in the following table.

During the given week, Chinese steelmakers increased their purchases of scrap, while low supplies in the scrap market have forced steelmakers to raise their purchase prices. In addition, the recent rebounds in prices of finished steel and iron ore have contributed to the rises in scrap prices. Scrap traders are mostly maintaining a wait-and-see stance as they expect better prices. It is thought that scrap prices in the Chinese domestic market will likely continue their rising trend in the coming week.

All prices include 17 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.33