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Weak operation of the domestic scrap steel market (October 16th to October 22nd)

Nov. 03, 2021

Last week, domestic scrap steel prices rose and fell each other, and merchants became more afraid of falling and actively shipped goods. There were not many resources left on the site. The arrival of steel mills increased compared with the previous week. Some key steel companies adjusted their purchase prices according to their own conditions. Compared with the previous week, the average purchase price of scrap for key steel enterprises has increased by RMB 4/ton for heavy scrap, decreased by RMB 19/ton for medium-sized scrap, and increased by RMB 4/ton for aggregate scrap.


Recently, the policy of restricting production and electricity has become stricter, the output and demand for finished products have weakened, and the profits of steel mills have been compressed. Affected by this, scrap prices have declined slightly in some areas. At present, most steel mills have delivered scrap steel to meet daily consumption, and their inventories are mostly maintained at a medium level. At the same time, the building materials market is weak, scrap steel merchants choose to ship goods in order to avoid risks, and the arrival of steel mills has increased, so they lowered their purchase prices. On the whole, in the context of weak market supply and demand and falling steel prices, it is expected that the short-term scrap steel market will continue to operate weakly.

Weak operation of the domestic scrap steel market (October 16th to October 22nd)

The scrap steel market in East China is operating weakly, with prices mainly falling, merchants are more cautious in receiving goods, and market transactions are average. Nangang's heavy scrap purchase price is 3710 yuan/ton, down 80 yuan/ton; Shagang's heavy scrap purchase price is 3840 yuan/ton, down 80 yuan/ton; Xingcheng Special Steel's heavy scrap purchase price is 3850 yuan/ton; Ma The purchase price of ordinary heavy scrap steel is 3750 yuan/ton; the purchase price of Tongling Fuxin heavy scrap steel is 4,070 yuan/ton; the purchase price of Xiwang Metal's fine heavy scrap steel is 3810 yuan/ton, down 40 yuan/ton; Ningbo Iron and Steel's October heavy duty The base price for scrap purchase is 3616 yuan/ton.


The scrap steel market in Central China has been operating steadily for the time being, the mentality of merchants has turned from strong to weak, the shipment speed has accelerated, the arrival of steel mills and the stock situation are average, and the wait-and-see sentiment has increased. Angang's heavy scrap purchase price is 3950 yuan/ton, down 30 yuan/ton; Wugang heavy scrap purchase price is 4150 yuan/ton; Valin Henggang's first-level qualified material purchase price is 3710 yuan/ton; Wuhan Iron and Steel low-sulfur scrap The purchase price is 4,040 yuan/ton.


The scrap steel market in South China has turned from strong to weak, quotations are chaotic, and merchants panic and sell more goods. Sangang Minguang's heavy scrap purchase price is 3,830 yuan/ton, down 50 yuan/ton; Shaoguan Iron and Steel's heavy-duty second-class scrap price is 3540 yuan/ton, up 30 yuan/ton.


The mainstream scrap steel market in the southwestern region is stable with individual adjustments, market resources are scarce, merchants have poor receipts, and steel mills have generally received goods. The heavy-duty No. 1 scrap price of Chongqing Iron & Steel is 3560 yuan/ton excluding tax; the purchase price of Kunming Iron and Steel's heavy-duty scrap is 4074 yuan/ton, an increase of 187 yuan/ton.


The mainstream scrap steel market in Northwest China is stable, with reduced market resources and limited transportation vehicles, but the steel mills are producing normally and the arrival situation is acceptable. The purchase price of Xining Special Steel's medium-sized first-qualified material is 3770 yuan/ton, down 60 yuan/ton; the purchase price of Jiuquan Steel's heavy scrap steel is 3511 yuan/ton.


The scrap steel market in the Northeast region is operating weakly, and most steel mills have seen a slight increase in their arrival volume. Linggang's heavy scrap purchase price is 3900 yuan/ton, down by 50 yuan/ton; Jianlong Xigang's heavy scrap purchase price is 3745 yuan/ton; Anshan Iron and Steel has not purchased scrap yet.


Scrap steel prices in North China rose first and then fell. The shortage of resource supply has eased. Some steel mills have increased their inventories and slightly lowered their purchase prices. The purchase price of Tianjin Steel's heavy scrap steel is 3980 yuan/ton, down by 50 yuan/ton; the purchase price of Shougang Qiangang's heavy scrap steel is 4170 yuan/ton; the purchase price of Baotou Steel's heavy-duty second-class scrap is 4397 yuan/ton; Taiyuan Iron and Steel's heavy-duty scrap purchases The price is 3910 yuan/ton.


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