Weak Ferrous Scrap Market Price in China

Ferrous scrap market price is decreasing in China since early May, according to China Association of Metal Scrap Utilization. The average price decreased by 52 yuan per tonne for heavy scrap, by 36 yuan for middle weight scrap and by 39 yuan for other grades in the fourth week of May from the previous week. The price was pressured by purchase price cut of major steel makers in many areas. One integrated steel maker source sees lower scrap price could impact on steel market price.

The ferrous scrap market price keeps decreasing and most of scrap dealers see the price will decrease more. The dealers significantly reduced the purchase volume from last week and steel makers’ purchase is thin. Average pig iron purchase price also decreased by 81 yuan per tonne in the fourth week of May from the previous week. Steel makers try to reduce scrap purchase price more while steel selling price is decreasing.

Steel makers reduced scrap purchase price by 50 yuan to 3,140 yuan per tonne for heavy scrap in Nanjing and Zhangjiagang in the fourth week of May from the previous week. The price decreased by 30 yuan to 3,160 yuan in Suzhou, by 140 yuan to 3,160 yuan in Maanshan and by 60 yuan to 3,050 yuan in Hangzhou.

Steel makers reduced the scrap purchase price by 80 yuan to 3,100 yuan per tonne in Tianjin. The price decreased by 50 yuan to 3,120 yuan in Baotou, by 50 yuan to 2,900 yuan in Liuzhou. Local maker in Shaoguan stopped scrap purchase.