SHANGHAI, May 15 (SMM) - The domestic steel scrap prices plummeted in April. As of April 30, the steel scrap prices in Zhangjiagang stood at 2,510 yuan/mt, down 300 yuan/mt from the end of March.

The slump in domestic steel scrap prices was mainly due to three factors: 1.The performance of steel demand was not as good as expected. After experiencing a mild recovery in March, orders from downstream industries weakened in April. 2.Steel supply peaked. In early-to-mid April, the domestic steel supply reached its peak. Abundant supply and weak consumption led to cautious market sentiment. 3.The fall in steel prices drove steel mills to reduce production, which weighed on raw material prices. Since mid-April, more steel mills have reduced production or carried out maintenance, hurting the demand for raw materials and resulting in a rapid decline in the prices of coal, steel scrap and iron ore. This round of sharp drop in steel scrap prices led to a significant decline in steel scrap supply and demand. To tackle production restriction policies, poor profits and sales, most steel mills slashed the proportion of steel scrap in steel production. On the supply side, steel scrap enterprises cut recycling and processing volumes due to losses.