Steel scrap market of June
2012-07-05 17:49:27 【Print】
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Most domestic steel scrap market followed a downtrend with slight fluctuations in June except for some mills that halted buying activity resumed procurement in this month. Steel scrap prices had marginal decreases by RMB20-80/t to RMB3,080-3,100/t VAT included delivered for burden fines in mainstream mills in Jiangsu. The price holds stable at RMB2,950/t VAT included delivered for HMS in mainstream mills and at RMB2,700/t VAT excluded delivered by cash payment for steel scrap in private mills in Fujian. The north market lacks supply as the price decreased to RMB2,520-2,540/t VAT excluded delivered by cash payment for machined scrap in Hei Longjiang and the price went up and down frequently in Chaoyang, Liaoning with an ultimate uptick of RMB30/t in this month.
Main reasons for the stable steel scrap market with small corrections are:
First, movements ran slack with a further decrease in price by RMB30-100/t in steel market. Steel market price hiked slightly for a while with the stimulating of favorable policies issued by the government at the beginning of June. However, the steel market followed a downtrend again with the diminishing of supportive news which fact brought down steel scrap price slightly as well.
Second, the mills in south China have sufficient inventory of steel scrap. It is known that the average inventory in east China-based mills could maintain production for about one to two months, so these mills cut purchasing price for the material further. It is noteworthy that the steel scrap market in Zhejiang ran actively as it responded promptly to the price uptick in steel market by lifting RMB30-50/t and then dropped by RMB30-50/t with active attitude from traders.
Third, the inventory in north China-based steel mills remained flat as mainstream mills in the three provinces in northeast China lacked inventory. However, mills cannot lift steel scrap price as there were no chance to lift steel products price except that some mills hiked steel scrap price slightly in order to stimulate delivery.
Main reasons for the stable steel scrap market with small corrections are:
First, movements ran slack with a further decrease in price by RMB30-100/t in steel market. Steel market price hiked slightly for a while with the stimulating of favorable policies issued by the government at the beginning of June. However, the steel market followed a downtrend again with the diminishing of supportive news which fact brought down steel scrap price slightly as well.
Second, the mills in south China have sufficient inventory of steel scrap. It is known that the average inventory in east China-based mills could maintain production for about one to two months, so these mills cut purchasing price for the material further. It is noteworthy that the steel scrap market in Zhejiang ran actively as it responded promptly to the price uptick in steel market by lifting RMB30-50/t and then dropped by RMB30-50/t with active attitude from traders.
Third, the inventory in north China-based steel mills remained flat as mainstream mills in the three provinces in northeast China lacked inventory. However, mills cannot lift steel scrap price as there were no chance to lift steel products price except that some mills hiked steel scrap price slightly in order to stimulate delivery.
