China’s scrap market sees stable amid cautious procurement
Time:Fri, 13 Dec 2024 09:48:08 +0800
keywords :
Last week, China’s scrap market experienced a fluctuating trend, with prices rising early in the week before retreating. On the demand side, steady finished steel prices prompted steel mills to adjust scrap procurement based on current consumption and winter storage needs. Short-process steel mills remained cautious, with limited price adjustments due to slim profit margins.
Electric arc furnace (EAF) mills operated near breakeven, with some planning to halt production in the coming weeks. Long-process mills sustained production but showed slow progress in winter storage, maintaining low inventory levels.
On the supply side, market sentiment toward winter storage was conservative, with quick turnover operations prioritized. Many reduced inventory levels this year, opting for winter storage only when low-cost resources promised adequate profits.
In 2024, annual scrap inventory dropped by 570,000 tons, or 9.59%, due to economic pressures and tighter profit margins. Steel mills adopted cost-saving strategies, keeping minimal inventory for daily operations. This week, the scrap steel market is expected to remain stable, with a consolidation trend.
