Chinese steel scrap prices decrease
2023-04-13 08:08:39 [Print]
BEIJING (Asian Metal) 13 Apr 23 - Given continuous price decline of steel products, Chinese steel scrap prices softened further this week. On Wednesday the mainstream prices of steel scrap HMS 6mm in Liaoning and Shandong stood at RMB2,780/t (USD404/t) and RMB3,030/t (USD440/t) Ex-VAT delivered D/P, down by around RMB20/t (USD3/t) respectively from late last week. After continuous decline, most suppliers became inactive in selling, while most steel mills hold large inventories shortly. Insiders predict steel scrap prices would keep flat in the coming week.
A steel mill in Liaoning stated that their purchasing price of steel scrap HMS 6mm hovered at RMB2,780/t (USD404/t) Ex-VAT delivered D/P on Wednesday and they bought around 200t of the material at this price. "We could not purchase the material at prices below RMB2,800/t (USD407/t) late last week," he said, adding that the company holds an inventory of nearly 12,000t, up by 2,000t from two weeks ago. Given the similar consumption amount and delivery volume every day this week, the source predicts steel scrap prices would level off in the coming week.
The steel mill owns an annual consumption capacity of 550,000t for steel scrap and used almost 135,000t of the material so far this year, against 420,000t in 2022. It would consume roughly 50,000t of steel scrap in April, up from 42,000t in March.
A steel mill in Shandong reported that their purchasing price of steel scrap HMS 6mm stood at RMB3,030/t (USD440/t) Ex-VAT delivered D/P on Wednesday. "We bought around 200t of the material at RMB3,030/t (USD440/t) on Wednesday and last bought around 150t at RMB3,050/t (USD443/t) last Sunday," revealed the source, adding that some suppliers became a little inactive in selling after prices went down by nearly RMB50/t (USD7/t) in April. However, the company's stock already went up by around 5,000t to 50,000t in past one week and they do not have much pressure from buying materials. He is in the opinion that steel scrap prices would level off in the coming week.
With an annual consumption capacity of 3.0 million tons for steel scrap, the steel mill consumed nearly 350,000t of the material in Q1 of this year, against roughly 2.35 million tons in 2022. It estimated to use about 220,000t of steel scrap in April, up from 200,000t in March.
A steel mill in Liaoning stated that their purchasing price of steel scrap HMS 6mm hovered at RMB2,780/t (USD404/t) Ex-VAT delivered D/P on Wednesday and they bought around 200t of the material at this price. "We could not purchase the material at prices below RMB2,800/t (USD407/t) late last week," he said, adding that the company holds an inventory of nearly 12,000t, up by 2,000t from two weeks ago. Given the similar consumption amount and delivery volume every day this week, the source predicts steel scrap prices would level off in the coming week.
The steel mill owns an annual consumption capacity of 550,000t for steel scrap and used almost 135,000t of the material so far this year, against 420,000t in 2022. It would consume roughly 50,000t of steel scrap in April, up from 42,000t in March.
A steel mill in Shandong reported that their purchasing price of steel scrap HMS 6mm stood at RMB3,030/t (USD440/t) Ex-VAT delivered D/P on Wednesday. "We bought around 200t of the material at RMB3,030/t (USD440/t) on Wednesday and last bought around 150t at RMB3,050/t (USD443/t) last Sunday," revealed the source, adding that some suppliers became a little inactive in selling after prices went down by nearly RMB50/t (USD7/t) in April. However, the company's stock already went up by around 5,000t to 50,000t in past one week and they do not have much pressure from buying materials. He is in the opinion that steel scrap prices would level off in the coming week.
With an annual consumption capacity of 3.0 million tons for steel scrap, the steel mill consumed nearly 350,000t of the material in Q1 of this year, against roughly 2.35 million tons in 2022. It estimated to use about 220,000t of steel scrap in April, up from 200,000t in March.
