During the week ending April 22, prices in the main local steel scrap markets in China have entered a downward trend following the previous increases, while transaction activity in the market has remained at good levels. Average scrap prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
Due to declines observed in prices of iron ore and semi-finished steel, steelmakers in China have reduced their purchase prices for scrap. Traders have accepted to sell at lower prices given the soft trend in the domestic finished steel market. The decrease in steel futures prices has also contributed to bearish sentiment in the local finished steel and scrap markets. After the recent rebound in scrap prices, traders of scrap in China are now more cautious. It is thought that steel scrap prices in the Chinese domestic market will move on a stable trend in the coming week.