Steel Scrap Prices In China Show Inverted V-Shaped Trend In March

SHANGHAI, Apr 11 (SMM) – The domestic steel scrap prices rose initially and then fell back in March. As of March 31, steel scrap prices in Zhangjiagang stood at 2,810 yuan/mt, down 70 yuan/mt from the end of February.

In the first half of March, a series of Chinese economic data, such as manufacturing PMI and M2, exceeded expectations. Meanwhile, end-user consumption recovered more rapidly than expected at the beginning of March, greatly boosting market sentiment. In this context, iron ore and steel prices hit a new high since the second half of 2022 in mid-March, buoying steel scrap prices as well. Nevertheless, widespread rainfalls across the country led to a sharp decline in end-user consumption in the second half of the month, weighing on steel prices. Moreover, iron ore prices collapsed amid rumours about production restrictions on steel mills, causing steel scrap prices to pull back.