Steel Scrap market sees slack peak period and busy slack period in Q3
2013-09-24 09:25:28 【Print】
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Although sharp decline in price of steel scrap did not appear since September, but participants has lost confidence about the market in September as continuous weakened situation with no positive factors, and players have different attitude to the future market. On one hand, main markets in Jiangsu see great price appreciation of steel scrap, and the price rises in surrounding areas, some players believe that this is the trend of the market price of steel scrap, so price of steel scrap will decline definitely in September. But steel mills and ironworks restock ahead of time due to Mid-Autumn Festival and National Day, and steel scrap market will be flat with marginal fluctuations in late September, while some players are bullish on the market in October with consumption in National Day and restocking for winter. On the other hand, prices of scrap have not strengthened in busy season in recent two years, and steel industry faces with large-scale consolidation and eliminating outdated capacity. With limited profit space of steel mills, price trend of the raw material scrap is obviously driven by demand, and it is reasonable for players to be pessimistic about the future market. It is said that steel scrap market will stay sluggish in the second half year.
