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The scrap market turns from weak to strong( 26th Dec 2020 to 8th Jan 2021)

Jan. 18, 2021

Recently, the scrap steel market has turned from weak to strong. Although prices have risen to varying degrees, social resources are in short supply, and the arrival of steel mills is generally low, and there is still a gap in winter storage inventory.


Compared with the previous period, the average purchase price of scrap for key steel companies has increased by RMB 47/ton for heavy scrap, RMB 59/ton for medium-sized scrap, and RMB 49/ton for aggregate scrap.

The scrap market turns from weak to strong( 26th Dec 2020 to 8th Jan 2021)

Recently, the iron ore and coke markets have strengthened again, boosting the scrap steel market. The temperature in the north has dropped sharply, and construction has been suspended on some construction sites, but the production rhythm of steel plants is basically normal. Scrap resources are in short supply and market competition is fierce. Due to the repeated effects of the epidemic, transportation in certain areas is restricted, vehicles are hard to find, and freight costs increase. At present, steel mills have a strong willingness to replenish inventory, but it is becoming more difficult to receive goods, and prices are increased to absorb goods. In view of the current high scrap prices and limited room for continued growth, industry insiders expect that the scrap market will run steadily, within a narrow range, and strong in the short term.


The scrap steel market in East China is operating steadily and on the strong side, and the amount of scrap steel purchased and processed at processing sites has decreased in cold weather. Nangang's heavy scrap purchase price is 3000 yuan/ton; Shagang's heavy scrap purchase price is 3160 yuan/ton, which is increased by 80 yuan/ton; Xingcheng Special Steel's heavy scrap purchase price is 3160 yuan/ton, which is increased by 80 yuan/ton; Ma The purchase price of steel heavy scrap is 2930 yuan/ton; the purchase price of Tongling Fuxin heavy scrap is 3160 yuan/ton; the bidding price of Laiwu Iron and Steel's heavy briquette B is 3410 yuan/ton, which is increased by 120 yuan/ton; Xiwang Metal's fine heavy scrap steel The purchase price is 3,220 yuan/ton, an increase of 70 yuan/ton; Ningbo Iron & Steel's January heavy scrap purchase base price is 2,825 yuan/ton, an increase of 100 yuan/ton.


The scrap steel market in Central China is operating at a high level. The inventory of steel mills is not high as a whole, and replenishment continues. The purchase price of Angang's heavy scrap steel is 3030 yuan/ton, an increase of 100 yuan/ton; the purchase price of Wugang's heavy scrap steel is 3120 yuan/ton, an increase of 70 yuan/ton; the purchase price of Valin Henggang's first-level qualified materials is 2940 yuan/ The purchase price of Lianyuan Iron and Steel's high-quality shearing material is 2850 yuan/ton, the purchase price of Xianggang's heavy scrap steel is 2950 yuan/ton; the purchase price of Wuhan Iron and Steel's heavy scrap steel is 3050 yuan/ton.


The scrap steel market in South China is operating steadily and on the strong side, with resource shortages, steel mills still have a shortage of inventory, and there are concerns about the later winter reserves. Sangang Minguang heavy scrap purchase price is 3170 yuan/ton; Shaoguan Iron and Steel's heavy second-class scrap purchase price is 3334 yuan/ton, an increase of 80 yuan/ton.


Scrap steel prices rebounded slightly in the southwest region, and steel mills received poorly. The purchase price of heavy steel scrap for Chongqing Iron and Steel is 3254 yuan/ton, an increase of 50 yuan/ton; the purchase price of Shougang Shuigang heavy scrap is 2890 yuan/ton; the purchase price of Kunshan Iron and Steel's heavy scrap is 2870 yuan/ton, an increase of 90 yuan/ton.


The mainstream scrap steel market in Northwestern China is stable, with individual adjustments, merchants are looking forward to growth, and shipments are slightly negative. The purchase price of Xining Special Steel's medium-sized first qualified material is 2870 yuan/ton, and the purchase price of Jiuquan Steel's heavy-duty scrap is 2,718 yuan/ton.


The scrap steel market in Northeast China is operating strongly and resources are scarce. Linggang's heavy scrap purchase price is 2980 yuan/ton, an increase of 30 yuan/ton; Anshan Iron and Steel's rebar head purchase price is 3320 yuan/ton; Jianlong Xigang's heavy scrap purchase price is 3205 yuan/ton.


The mainstream scrap market in North China is stable, and the planned winter storage inventory of steel mills has increased. The purchase price of Tianjin Steel's heavy-duty scrap is 3180 yuan/ton, an increase of 90 yuan/ton; the purchase price of Shougang Qiangang's heavy-duty scrap is 3370 yuan/ton; the purchase price of Baotou's heavy-duty concentrate is 3209 yuan/ton; the purchase price of Taigang's heavy-duty scrap It is 2830 yuan/ton.


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