Steel Scrap Prices Increase amid Strong Post-holiday Demand

SHANGHAI, Feb 10 (SMM) - Yesterday, the steel scrap prices increased and most steel mills quoted stably. Some steel mills in east China raised their prices by 30-40 yuan/mt.

On the demand side, the pre-holiday restocking of steel mills was less than expected, hence the post-holiday demand remained strong. But the inventory of traders were high as they stockpiled actively amid the positive sentiment. According to SMM research, as of February 7, the average operating rate of electric furnaces was 27.7% and the capacity utilisation rate was 92.45%. The demand for steel scrap steadily increased after the Chinese New Year holiday. It is expected that the prices will be stable and strong after the CNY amid the tight supply.