Information and Statistics Department of China Scrap Steel Application Association
Recently, domestic scrap steel prices have risen sharply, merchants have been more willing to ship, steel companies have increased their arrival volume, and social inventory has dropped significantly. Compared with two weeks ago, the average purchase price of scrap steel by key steel companies has increased by 162 yuan/ton for heavy scrap steel, 181 yuan/ton for medium scrap steel, and 193 yuan/ton for general scrap steel.
Before the National Day, macro-favorable policies continued, including the Fed’s interest rate cuts, domestic reserve requirement ratio cuts, interest rate cuts, and mortgage interest rates, boosting market confidence. Stimulated by favorable policies, finished steel prices have risen strongly, steel companies have recovered their profits, and have begun to gradually resume production, which is beneficial to scrap steel to a certain extent and has driven up prices. Due to the sharp rise in prices, the processing and shipping speed of scrap steel bases has accelerated, steel companies have received more goods, and inventory has accumulated. However, as the price of black series has risen and fallen, the market mentality has weakened, and some steel companies have begun to slightly reduce their purchasing prices, and the arrival volume of scrap steel has declined. On the whole, it is expected that the domestic scrap steel market will mainly fluctuate in a narrow range in the short term.
The scrap steel market in East China is running strong, steel companies’ profits continue to recover, and merchants are willing to operate. The purchase price of heavy scrap steel of Nangang is 2590 yuan/ton, an increase of 180 yuan/ton; the purchase price of heavy scrap steel of Shagang is 2620 yuan/ton, an increase of 150 yuan/ton; the purchase price of heavy scrap steel of Xingcheng Special Steel is 2620 yuan/ton, an increase of 100 yuan/ton; the purchase price of heavy scrap steel of Magang is 2220 yuan/ton; the purchase price of heavy scrap steel of Tongling Fuxin is 2700 yuan/ton, an increase of 170 yuan/ton; the bidding price of crushed material briquetting of Shandong Steel and Laigang is 2430 yuan/ton, an increase of 40 yuan/ton; the base price of heavy scrap steel purchase of Ningbo Steel in October is 2407 yuan/ton, an increase of 150 yuan/ton.
The scrap steel prices in Central China are mainly rising, the production enthusiasm of steel companies is enhanced, and the demand for scrap steel is increasing. Angang’s heavy scrap purchase price is 2,680 yuan/ton, up 180 yuan/ton; Wugang’s heavy scrap purchase price is 2,630 yuan/ton, up 100 yuan/ton; Liangang’s heavy scrap ex-factory price is 2,350 yuan/ton, up 230 yuan/ton; Wuhan Iron and Steel’s low-sulfur briquette scrap purchase price is 2,649 yuan/ton; Hunan Iron and Steel Henggang’s heavy scrap ex-factory price is 2,350 yuan/ton, up 280 yuan/ton.
After a sharp rise, scrap prices in South China fell slightly, the operating rate and capacity utilization rate of electric arc furnace steel companies increased significantly, and the demand for scrap steel increased. The purchase price of heavy scrap steel of Sangang Minguang is 2660 yuan/ton, an increase of 150 yuan/ton; the ex-factory price of heavy type II scrap steel of Shaoguan Iron and Steel is 2500 yuan/ton, an increase of 170 yuan/ton; the purchase price of first-grade carbon steel scrap steel (crushed material) of Angang Lianzhong is 2730 yuan/ton, an increase of 70 yuan/ton.
The scrap steel market in the southwest region is running strong, and the macro-favorable policies continue to stimulate the market. The market’s expectations for rising prices are heating up, and merchants are operating more actively. The tax-free price of heavy scrap steel of Chongqing Iron and Steel is 2480 yuan/ton, an increase of 250 yuan/ton; the purchase price of briquetted scrap steel of Kunming Iron and Steel is 2530 yuan/ton, an increase of 300 yuan/ton.
The scrap steel price in the northwest region is stable, the merchants’ delivery speed is accelerated, the arrival of steel enterprises is acceptable, and the willingness to purchase scrap steel is general. The purchase price of heavy scrap steel of Xining Special Steel is 2519 yuan/ton; Jiugang has not purchased scrap steel yet.
The scrap steel market in Northeast China is operating in a narrow range, steel enterprises are short of funds, profitability is poor, and purchase prices are weak. Jianlong Xigang (Yichun area) purchases heavy scrap steel at 2,254 yuan/ton; Angang purchases heavy scrap steel at 2,531 yuan/ton; Fushun Special Steel purchases heavy scrap steel at 2,700 yuan/ton, an increase of 190 yuan/ton; Linggang purchases heavy scrap steel at 2,500 yuan/ton.
The scrap steel market in North China is mainly volatile and strong, merchants are more active in operation, steel enterprises have good delivery conditions, scrap steel consumption has increased slightly, and the overall inventory has increased. Shougang Qiangang’s purchase price for heavy scrap steel is 2,750 yuan/ton, an increase of 200 yuan/ton; Tianjin Steel Pipe’s purchase price for heavy scrap steel of Class II is 2,650 yuan/ton, an increase of 240 yuan/ton; Baosteel’s purchase price for heavy scrap steel is 2,768 yuan/ton, an increase of 204 yuan/ton; Hegang Shigang’s tax-free price for heavy scrap steel is 2,440 yuan/ton, an increase of 135 yuan/ton.
China Metallurgical News (October 16, 2024, Page 06, Page 6)
