Last week, domestic scrap steel prices rose slightly, and market resources were tight. Scrap steel processing bases resumed work one after another, but the output of scrap steel was still limited. Steel companies received less than their daily consumption, and inventory was mostly at a low level. Compared with the previous week, the average purchase price of scrap steel for key steel enterprises has increased by 10 yuan/ton for heavy-duty scrap steel, 3 yuan/ton for medium-sized scrap steel, and 8 yuan/ton for bulk scrap steel.
Recently, the construction steel market has been operating strongly, and market demand has rebounded, which is favorable for scrap steel prices. At present, there is a strong sentiment of anticipation for price increases in the scrap steel processing base, and the willingness of merchants to ship is not strong. Due to low inventory, there is still a gap between the arrival and normal levels, and the scrap steel receiving price has been slightly raised. With the resumption of production by electric arc furnace steel enterprises, the demand for scrap steel has increased. Although the delivery situation of steel enterprises has improved, there is still a certain demand for replenishment. Considering that the overall inventory of finished products is still in a cumulative state, the profit recovery ability of steel enterprises is limited, and the procurement of scrap steel is still relatively cautious, with limited price increases. Overall, it is expected that the domestic scrap steel market will operate narrowly and strongly in the short term.
The overall price of scrap steel in East China is stable, and the market’s bullish sentiment is heating up. Merchants are not receiving much, and the demand for steel companies to replenish inventory is still there. The purchase price of heavy-duty scrap steel at Nangang is 2515 yuan/ton; The purchase price of Shagang’s heavy-duty scrap steel is 2460 yuan/ton; The purchase price of heavy-duty scrap steel for Xingcheng Special Steel is 2560 yuan/ton; The purchase price of heavy scrap steel from Magang is 2210 yuan/ton; The purchase price of Tongling Fuxin heavy-duty scrap steel is 2580 yuan/ton; The bidding price for crushing material blocks at Shangang Laigang is 2480 yuan/ton; The base price for the purchase of heavy scrap steel by Ningbo Iron and Steel in February was 2294 yuan/ton.
The scrap steel market in Central China is operating steadily, but due to the tight market resources, it is difficult for businesses to recycle and a small amount of scrap steel is being shipped. The purchase price of heavy scrap steel from Angang is 2650 yuan/ton; The purchase price of heavy scrap steel from Wugang is 2690 yuan/ton; The ex factory price of heavy-duty scrap steel from Liangang, excluding tax, is 2129 yuan/ton; The factory price of special grade pressed scrap steel from Xianggang, excluding tax, is 2220 yuan/ton upon acceptance; The purchase price of low sulfur pressed scrap steel from Wuhan Iron and Steel Group is 2550 yuan/ton; The ex factory price of heavy-duty scrap steel from Hunan Iron and Steel Henggang, excluding tax, is 2090 yuan/ton.
The prices of scrap steel in the southern region of China have fluctuated, with low inventory in scrap steel processing bases and weak willingness of merchants to ship. Although the arrival volume of steel enterprises has increased, it still cannot meet daily consumption. The purchase price of SanGang Minguang heavy-duty scrap steel is 2480 yuan/ton; The ex factory price of Shaogang’s heavy-duty Class II scrap steel, excluding tax, is 2360 yuan/ton, a decrease of 40 yuan/ton; The purchase price of Ansteel Lianzhong Grade I carbon steel scrap is 2680 yuan/ton.
The scrap steel market in the southwest region is operating steadily with a moderate to strong trend, with a slight increase in finished product prices. Steel companies are experiencing poor delivery of scrap steel, resulting in a narrow increase in procurement prices. The price of heavy-duty scrap steel from Heavy Steel, excluding tax, is 2290 yuan/ton; The purchase price of Kunsteel’s pressed scrap steel is 2430 yuan/ton, with an increase of 30 yuan/ton.
The price of scrap steel in the northwest region is stable but rising, and market resources are tight. The rise in rebar futures prices has provided some support for scrap steel prices. The purchase price of heavy scrap steel for Xining Special Steel is 2345 yuan/ton, with an increase of 90 yuan/ton; The purchase price of medium-sized scrap steel from Jiugang is 2310 yuan/ton.
The scrap steel market in Northeast China is operating steadily, with limited market resources and weak willingness of merchants to receive goods. Steel companies continue to digest their internal inventory. The purchase price of heavy scrap steel for Jianlong West Steel (Yichun area) is 2254 yuan/ton; The purchase price of Ansteel’s heavy-duty scrap steel is 2610 yuan/ton; The purchase price of heavy-duty scrap steel for Fushun Special Steel is 2540 yuan/ton; The purchase price of Linggang’s heavy-duty scrap steel is 2470 yuan/ton, with an increase of 60 yuan/ton.
The scrap steel market in North China is experiencing a strong adjustment, and businesses are optimistic about the future market. The shipment speed has slowed down, and the profits of steel companies have improved, leading to an increase in demand for scrap steel. The purchase price of heavy scrap steel for Shougang Qiangang is 2700 yuan/ton, with an increase of 20 yuan/ton; The purchase price of heavy-duty Class II scrap steel for Tianjin steel pipes is 2540 yuan/ton, with an increase of 20 yuan/ton; The purchase price of Baosteel’s heavy-duty Class II scrap steel is 2779 yuan/ton; The purchase price of Taigang’s secondary crushed materials is 2415 yuan/ton; The price of heavy-duty scrap steel from Hegang Shigang, excluding tax, is 2413 yuan/ton, with an increase of 18 yuan/ton.