Steel Scrap Prices may Rise Further amid Tight Supply

SHANGHAI, Feb 24 (SMM) - On January 23, the prices of steel scrap across the country increased. Among them, the prices in east China increased 30-50 yuan/mt; that in central China increased 30 yuan/mt; that in south China rose 30 yuan/mt. The prices in other regions remained stable, and that in only few placed dipped slightly.

On the supply side, the rising prices of steel scrap made traders cautious in delivering, and thus it was hard for steel mills to pick up goods in low prices. On the demand side, according to SMM research, the operating rates of EAF steel mills continued to rise 4.67 percentage points to 44.3% as the sales improved. However, the insufficient steel scrap supply caused most enterprises to fail to increase the production. In the short term, the prices of steel scrap may rise further amid the imbalance between the supply and demand.