Transaction activity still quiet in local Chinese steel scrap market

During the week ending January 6, local steel scrap prices in the Chinese market have continued to move on a declining trend, while transaction activity in the domestic scrap market has not seen any improvement and remains sluggish. Average scrap prices in the local Chinese market can be viewed in the SteelOrbis price reports section.
 
During the past week, China cancelled its export tax rebate for boron-added steel, negatively affecting the domestic finished steel market. Accordingly, there has been a lack of support for scrap prices, which have thus indicated further declines. In the futures markets in China, prices of finished steel, coke and iron ore have indicated sharp increases following previous temporary corrections. It is expected that scrap prices in the Chinese domestic market will halt their decreasing trend and move sideways in the coming week.