Chinese steel scrap supply reduces
2023-03-30 07:47:30 [Print]
BEIJING (Asian Metal) 30 Mar 23 - Due to continuous price decline in past two weeks, Chinese steel scrap suppliers became inactive in selling and prices of steel scrap showed some signs of rebounding this week. On Wednesday the mainstream prices of steel scrap HMS 6mm in Guangdong and Liaoning stood at RMB2,900/t (USD421/t) and RMB2,880/t (USD418/t) Ex-VAT delivered D/P, up by RMB50/t and flat from Tuesday. Upon reduced supply in the market, insiders predict steel scrap prices would go up in the coming week.
A trader in Guangdong told that due to continuous rain in local market recently, his collection for steel scrap reduced. He only holds an inventory of nearly 800t at present, down from 1,500t ten days ago. He asked RMB2,900/t (USD421/t) Ex-VAT delivered D/P without concession for steel scrap HMS 6mm this Wednesday, while he sold around 80t of the material at RMB2,850/t (USD414/t) on Tuesday. "Most steel mills' stocks for steel scrap went down in the past week due to rainy days," he said, adding that he remained in no hurry to sell steel scrap. As steel prices rebounded slightly this week, he is of the opinion that steel scrap prices would edge up further by around RMB30/t (USD4/) in coming days of this week.
The company recorded a sales volume of nearly 20,000t in 2022 and 3,000t so far this year. It estimated the sales amount would reach about 1,200t in March, similar to that in February.
A steel mill in Liaoning reported that they could buy around 600t of steel scrap in one day this week, down from 900t per day last week. They bought around 50t of steel scrap HMS 6mm at RMB2,880/t (USD418/t) Ex-VAT delivered D/P on Wednesday and last bought around 80t at the same price on Monday. "Our inventory went down by around 2,000t to the current 10,000t in past five days," said the steel mill, adding that they would have to raise steel scrap purchasing prices slightly in coming two days if the stock continued going down. He deems that steel scrap prices would rise by RMB20/t (USD3/t) in following days of this week.
Owning an annual consumption capacity of 550,000t for steel scrap, the company consumed roughly 110,000t of the material so far this year, against 420,000t in 2022. It estimated the consumption volume would reach nearly 42,000t in March, up from 35,000t in February.
A trader in Guangdong told that due to continuous rain in local market recently, his collection for steel scrap reduced. He only holds an inventory of nearly 800t at present, down from 1,500t ten days ago. He asked RMB2,900/t (USD421/t) Ex-VAT delivered D/P without concession for steel scrap HMS 6mm this Wednesday, while he sold around 80t of the material at RMB2,850/t (USD414/t) on Tuesday. "Most steel mills' stocks for steel scrap went down in the past week due to rainy days," he said, adding that he remained in no hurry to sell steel scrap. As steel prices rebounded slightly this week, he is of the opinion that steel scrap prices would edge up further by around RMB30/t (USD4/) in coming days of this week.
The company recorded a sales volume of nearly 20,000t in 2022 and 3,000t so far this year. It estimated the sales amount would reach about 1,200t in March, similar to that in February.
A steel mill in Liaoning reported that they could buy around 600t of steel scrap in one day this week, down from 900t per day last week. They bought around 50t of steel scrap HMS 6mm at RMB2,880/t (USD418/t) Ex-VAT delivered D/P on Wednesday and last bought around 80t at the same price on Monday. "Our inventory went down by around 2,000t to the current 10,000t in past five days," said the steel mill, adding that they would have to raise steel scrap purchasing prices slightly in coming two days if the stock continued going down. He deems that steel scrap prices would rise by RMB20/t (USD3/t) in following days of this week.
Owning an annual consumption capacity of 550,000t for steel scrap, the company consumed roughly 110,000t of the material so far this year, against 420,000t in 2022. It estimated the consumption volume would reach nearly 42,000t in March, up from 35,000t in February.
