Tight Steel Scrap Supply Likely To Limit Downside Room Of Steel Prices

According to SMM, as of Thursday (June 27), inventory in the Shanghai Bonded Zone was 13,500 mt, flat WoW. The zinc ingot import window remained closed during the week, keeping bonded warehouse inventory stable.

SMM magnesium price

SMM titanium price

SMM zinc industry data

Iron ore market in Shandong swung in firmness.

The most-traded I2309 iron ore contract closed up 1.74% at 849.5 yuan/mt today.

The orders of cable companies did not improve noticeably last week. The downstream buyers were cautious about placing orders due to strong bearishness.

As of Wednesday June 21, the weekly average price of bare bright copper rose by 1,033 yuan/mt to 63,333 yuan/mt. Copper scrap traders sold at highs, growing supply of copper scrap. The high absolute copper price strengthened the substitution of copper rod produced with copper cathode by copper rod produced with copper scrap, growing demand for copper scrap. The supply of copper scrap remained ample.

LME copper prices closed at $8,419.5/mt last evening, down 1.86%. Trading volume was 19,000 lots and open interest stood at 262,000 lots. The SHFE market was closed due to the Dragon Boat Festival holidays. On the macro front, Federal Reserve Chairman Powell said at a hearing of the Senate Banking Committee last Thursday that it would be appropriate to raise interest rates twice again this year, and there is still a long way to go to solve the inflation problem. The hawkish speech made the dollar rise.

Li Qiang will attend the 14th Summer Davos Forum