Weekly Review on Scrap Market in China – 16-20 April
The market saw dips about 20-50 yuan/tonne this week, esp. in East and central China. Most steel mills slowed down their purchasing and some even halted buying. In the short run they would continue to consume inventories. On the market, participants held bearish outlooks and tried to avoid stocking. Currently, domestic scrap market would correct in narrow range without supports.
In Shandong province, scrap market experienced slight declines. Currently, heavy scrap was 2,820-2,850 yuan/tonne on the market. Major steel mills all lowered their prices and the gloomy air dominated the whole local market.
Jiangsu scrap market edged down by 30 yuan/tonne. Scrap returns purchased by leading steel mills was about 3,280-3,350 yuan/tonne incl. VAT. Bonus scrap returns was 3,550-3,580 yuan/tonne incl. VAT. The heavy scrap on the market is offered at 2,800-2,850 yuan/tonne. The inventories held by steel plants see no changes. Most mills could still ensure 1-2 mouths normal production.
In Fujian Province, Sanbao Steel downgraded purchase prices twice, totaled 60 yuan/tonne. Sanming Steel also cut its purchase price by 30 yuan/tonne. At present major steel plants in Fujian had steady supplies and prices would be hard to retreat.
Scrap market in Hunan province corrected this week, major steel mills offered 3,230-3,440 yuan/tonne for heavy scrap; on the market, 2,750-2,850 yuan/tonne excl. VAT.
In Hubei, the heavy scrap price in the market was 2,850-2,900 yuan/tonne while in major steel mills, 3,370-3,440 yuan/tonne.
In Jiangxi, 3,340-3,450 yuan/tonne incl. VAT was offered for heavy scrap by major steel mills. And in the market the price was 2,850-2,900 yuan/tonne excl. VAT..
In Henan province, price charging for heavy scrap in major steel mills dwells at 3,400-3,430 yuan/tonne; in the market, 2,780-2,850 yuan/tonne excl. VAT. Jiyuan Steel cut its purchase prices by 50 yuan/tonne. After the adjustment, heavy scrap(≥6mm) is offered at 3,450 yuan/tonne; medium scrap(≥3mm), 3,410 yuan/tonne.
Heavy scrap in South China went down, slashed by finished product market, compounded by the heavy rains in most regions. r the price for heavy scrap was 3,400 yuan/tonne incl. VAT while on the market, 3,000 yuan/tonne excl.VAT. The scrap market will remain bearish for a long time.
Heavy scrap bought by leading steel mills recorded at 3,290-3,350 yuan/tonne incl. VAT; in Tangshan, at 2,860-2,900 yuan/tonne excl. VAT; that in Beijing and Tianjin, at 2,780-2,820 yuan/tonne excl. VAT. Billet in Tangshan Region dipped continually, dragging down scrap prices by 30-50 yuan/tonne as well.
In Northeast China, Liaoning market offered 2,800-2,850 yuan/tonne and Heilongjiang, 2,750-2,780 yuan/tonne excl. VAT for heavy scrap. Ship plate scrap was priced at 2,900-3,050 yuan/tonne excl. VAT. Major steel mills provided 3,480 yuan/tonne incl. VAT for heavy sheared scrap. Large steel producers used more pig iron than scrap out of cost control under the sagging construction steel market in North China. The dilemma is expected to sustain provided with the absence of bullish news on the market.
In Northwest China, heavy scrap prevails at 2,580-2,620 yuan/tonne excl. VAT in Lanzhou; that in Xi’an, at 2,750 yuan/tonne; in Xining, 2,600 yuan/tonne. The price in leading steel mills is 2,900-3,250 yuan/tonne, incl. VAT. Local scrap market eyed a decline of 20-50 yuan/tonne. Most resources flowed to other areas as local transactions were quite thin.
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