Steel Scrap Quotes across Chinese Markets Generally Rise on Feb 22

SHANGHAI, Feb 23 (SMM) - On February 22, quotes of steel scrap in most regions across China generally rose. The price hike was 20-50 yuan/mt in east China; 30 yuan/mt in Yunnan and other places; 20-40 yuan/mt in north China; 20 yuan/mt in some areas in south China, central China, and north-west China. It is sure that the supply and demand relationship will continue to improve.

On the supply side, the prices of steel scrap have risen recently. The producers were reluctant to sell and delivered prudently, which made it more difficult for steel mills to purchase steel scrap. On the demand side, according to SMM research, the average operating rate of EAF mills rose further by 4.67 percentage points week-on-week to 44.3%. Recently, the sales of steel mills have improved, stimulating the production. However, most mills failed to ramp up production owing to the insufficient supply of scrap steel. In the short term, the game between the supply and demand for scrap steel will intensify, and the prices of steel scrap will grow.