Steel Scrap Market Report September 2012
2012-10-11 17:25:39 【Print】
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Domestic steel scrap market price hiked driven by the uptrend of steel price this month. Stimulated by the approval of a number of projects issued by China National Development and Reform Committee, steel price, especially building material price, hiked with fluctuations with an average rebounding of about RMB100/t and a highest uptick of about RMB200/t. Therefore, steel scrap price lifted in different ranges of about RMB100-200/t.
In Jiangsu, some mills lifted burden fines price to RMB2,600/t by cash payment and others held the price unchanged at RMB2,400/t, both on a VAT included delivered basis. Burden fines prices ran at RMB2,330-2,350/t in Ningbo and at RMB2,300-2,320/t in Hangzhou, Zhejiang, at RMB2,330-2,350/t in Fujian; HMS prices ran at RMB2,200-2,220/t in Anhui, at RMB2,400/t the highest with mainstream running at RMB2,300/t in Shandong, at RMB2,450-2,470/t in Guangzhou; price held at RMB2,200-2,220/t for steel scrapⅠin Hunan, at RMB2,350-2,370/t for scrap cuttings in Hubei, at RMB2,300-2,320/t the highest for HMS in Jiangxi, at RMB2,430-2,450/t for HMS in Hebei, at RMB2,380/t for HMS in Chaoyang, Liaoning, at RMB2,480/t the highest for the material in Liaoyang and at RMB2,480/t for HMS in Anshan; all on a VAT excluded delivered by cash payment basis.
Reasons for the uptick in steel scrap market in September mainly are: First, price rebound in steel products market, especially building materials market at RMB100-200/t, stimulated upticks in raw material market including steel scrap market. Second, some mills running out of steel scrap inventory needed to restock since steel scrap market had decreased for a long time. Third, many traders lost confidence and left the market after great decreases lasting from last October till now. Mills lift the price to attract businesses from traders in case of a lack of supply when the market recovers in the future. Fourth, some mills increased price to stockpile for normal production during the National Holiday.
In Jiangsu, some mills lifted burden fines price to RMB2,600/t by cash payment and others held the price unchanged at RMB2,400/t, both on a VAT included delivered basis. Burden fines prices ran at RMB2,330-2,350/t in Ningbo and at RMB2,300-2,320/t in Hangzhou, Zhejiang, at RMB2,330-2,350/t in Fujian; HMS prices ran at RMB2,200-2,220/t in Anhui, at RMB2,400/t the highest with mainstream running at RMB2,300/t in Shandong, at RMB2,450-2,470/t in Guangzhou; price held at RMB2,200-2,220/t for steel scrapⅠin Hunan, at RMB2,350-2,370/t for scrap cuttings in Hubei, at RMB2,300-2,320/t the highest for HMS in Jiangxi, at RMB2,430-2,450/t for HMS in Hebei, at RMB2,380/t for HMS in Chaoyang, Liaoning, at RMB2,480/t the highest for the material in Liaoyang and at RMB2,480/t for HMS in Anshan; all on a VAT excluded delivered by cash payment basis.
Reasons for the uptick in steel scrap market in September mainly are: First, price rebound in steel products market, especially building materials market at RMB100-200/t, stimulated upticks in raw material market including steel scrap market. Second, some mills running out of steel scrap inventory needed to restock since steel scrap market had decreased for a long time. Third, many traders lost confidence and left the market after great decreases lasting from last October till now. Mills lift the price to attract businesses from traders in case of a lack of supply when the market recovers in the future. Fourth, some mills increased price to stockpile for normal production during the National Holiday.
