Some upticks expected in local Chinese steel scrap prices

During the week ending August 19, local steel scrap prices in the Chinese market have indicated a rebound in Jiangxi, Shandong and Tianjin, though remaining stable in other regions, 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, although some small steelmakers have tried to lower purchase prices for scrap, large steelmakers' purchase prices for scrap have indicated slight rises, resulting in slight increases seen in average scrap prices on RMB basis. In the given period, the supply volume of scrap has only improved slightly. It is expected that scrap prices in the Chinese domestic market will likely indicate an upward movement in the coming week with the support of rises in prices of finished steel and iron ore.

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

$1 = RMB 6.40