Chinese steel scrap prices to fall
2023-04-21 08:24:01 [Print]
BEIJING (Asian Metal) 21 Apr 23 - Due to lower prices of steel products, Chinese steel scrap market performed inactively this week and prices would edge down in coming two days. On Thursday the mainstream prices of steel scrap HMS 6mm in Tianjin and Fujian stood at RMB2,910/t (USD423/t) and RMB2,950/t (USD429/t) Ex-VAT delivered D/P, similar to Wednesday. As steel prices kept going down, insiders predict steel scrap prices would soften further in the coming week.
A consumer in Tianjin reported that he could buy around 4,000t of steel scrap in one day this week, up from 3,000t last week. Seeing lower prices of steel products and sufficient supply, he plans to cut purchasing prices of steel scrap by RMB20/t (USD3/t) on Friday. His purchasing price of steel scrap HMS 6mm stood at RMB2,910/t (USD423/t) Ex-VAT delivered D/P on Thursday and he bought nearly 100t of the material at this price. "We last bought around 200t of the material at RMB2,910/t (USD423/t) on Tuesday," he said, thinking that steel scrap prices would go down in the coming week.
Reporting an annual consumption capacity of 750,000t for steel scrap, the company consumed nearly 180,000t of steel scrap in Q1 of this year and almost 700,000t in 2022. It estimated the consumption amount would reach roughly 80,000t in April, up from 50,000t in March. It has an inventory of nearly 8,000t currently.
A trader in Fujian revealed that one big steel mill in Fujian announced to lower purchasing prices of steel scrap by RMB50/t (USD7/t) from Friday and other mills would follow. He sold around 50t of steel scrap HMS 6mm at RMB2,950/t (USD429/t) Ex-VAT delivered D/P on Thursday and last sold about 30t of the material at the same price on Tuesday. "We accelerated sales this week seeing steel market weakened amid falling prices and we have an inventory of nearly 300t at present, down by 200t from one week ago," he said, predicting that steel scrap prices would decline in the coming week.
The company recorded a sales amount of nearly 50,000t in 2022 and roughly 8,000t in the Q1 of this year. It would sell around 2,500t of steel scrap in April, down from 3,000t in March.
A consumer in Tianjin reported that he could buy around 4,000t of steel scrap in one day this week, up from 3,000t last week. Seeing lower prices of steel products and sufficient supply, he plans to cut purchasing prices of steel scrap by RMB20/t (USD3/t) on Friday. His purchasing price of steel scrap HMS 6mm stood at RMB2,910/t (USD423/t) Ex-VAT delivered D/P on Thursday and he bought nearly 100t of the material at this price. "We last bought around 200t of the material at RMB2,910/t (USD423/t) on Tuesday," he said, thinking that steel scrap prices would go down in the coming week.
Reporting an annual consumption capacity of 750,000t for steel scrap, the company consumed nearly 180,000t of steel scrap in Q1 of this year and almost 700,000t in 2022. It estimated the consumption amount would reach roughly 80,000t in April, up from 50,000t in March. It has an inventory of nearly 8,000t currently.
A trader in Fujian revealed that one big steel mill in Fujian announced to lower purchasing prices of steel scrap by RMB50/t (USD7/t) from Friday and other mills would follow. He sold around 50t of steel scrap HMS 6mm at RMB2,950/t (USD429/t) Ex-VAT delivered D/P on Thursday and last sold about 30t of the material at the same price on Tuesday. "We accelerated sales this week seeing steel market weakened amid falling prices and we have an inventory of nearly 300t at present, down by 200t from one week ago," he said, predicting that steel scrap prices would decline in the coming week.
The company recorded a sales amount of nearly 50,000t in 2022 and roughly 8,000t in the Q1 of this year. It would sell around 2,500t of steel scrap in April, down from 3,000t in March.
