Chinese steel scrap prices fall
2023-04-05 08:53:18 [Print]
BEIJING (Asian Metal) 5 Apr 23 - Discouraged by falling prices of steel products, Chinese steel scrap prices went down this week. On Tuesday the mainstream prices of steel scrap HMS 6mm in Hebei and Fujian stood at RMB3,000/t (USD436/t) and RMB3,020/t (USD439/t) Ex-VAT delivered D/P, down by RMB30/t (USD4/t) and RMB40/t (USD6/t) respectively from late last week. Upon declining prices of steel products, insiders predict steel scrap prices would fall further in the coming week.
A steel mill in Hebei reported that their purchasing price of steel scrap HMS 6mm hovered at RMB3,000/t (USD436/t) Ex-VAT delivered D/P on Tuesday and they bought around 800t of the material at this price. "We last bought about 1,000t of the material at RMB3,030/t (USD440/t) last Sunday," reported the steel mill, adding that they could buy around at least 10,000t of steel scrap in one day this week, up by almost 5,000tpd from last week. They need to consume 7,000tpd or so at present. Seeing rising stocks, the source deems that steel scrap prices would decrease further in the coming week.
The steel mill, reporting an annual consumption capacity of 5.0 million tons for steel scrap, used almost 500,000t of steel scrap in Q1 of this year, against nearly 3.2 million tons of in 2022. It holds an inventory of roughly 100,000t at present.
A trader in Fujian stated that he sold around 50t of steel scrap HMS 6mm at RMB3,020/t (USD439/t) Ex-VAT delivered D/P on Tuesday, while he refused bids lower than RMB3,060/t (USD444/t) late last week. "I promoted sales since last Friday seeing steel market cooled down and my inventory went down by around 500t to 500t in recent four days," he said, showing little optimism for the market in coming two weeks. He is in the opinion that steel scrap prices would edge down further in the coming week.
With a sales amount of roughly 50,000t in 2022, the company sold nearly 8,000t of steel scrap in the first three months of this year. It estimated the sales amount would reach about 3,000t in April, similar to March.
A steel mill in Hebei reported that their purchasing price of steel scrap HMS 6mm hovered at RMB3,000/t (USD436/t) Ex-VAT delivered D/P on Tuesday and they bought around 800t of the material at this price. "We last bought about 1,000t of the material at RMB3,030/t (USD440/t) last Sunday," reported the steel mill, adding that they could buy around at least 10,000t of steel scrap in one day this week, up by almost 5,000tpd from last week. They need to consume 7,000tpd or so at present. Seeing rising stocks, the source deems that steel scrap prices would decrease further in the coming week.
The steel mill, reporting an annual consumption capacity of 5.0 million tons for steel scrap, used almost 500,000t of steel scrap in Q1 of this year, against nearly 3.2 million tons of in 2022. It holds an inventory of roughly 100,000t at present.
A trader in Fujian stated that he sold around 50t of steel scrap HMS 6mm at RMB3,020/t (USD439/t) Ex-VAT delivered D/P on Tuesday, while he refused bids lower than RMB3,060/t (USD444/t) late last week. "I promoted sales since last Friday seeing steel market cooled down and my inventory went down by around 500t to 500t in recent four days," he said, showing little optimism for the market in coming two weeks. He is in the opinion that steel scrap prices would edge down further in the coming week.
With a sales amount of roughly 50,000t in 2022, the company sold nearly 8,000t of steel scrap in the first three months of this year. It estimated the sales amount would reach about 3,000t in April, similar to March.
