Steel Scrap Prices Dragged by Panic Market Sentiment

SHANGHAI, Feb 16 (SMM) - On January 15, the prices of steel scrap across the country trended in both directions. In Guangxi and Hebei, the steel scrap prices increased by 20-50 yuan/mt while that in Inner Mongolia, Shandong and Hunan declined by 10-60 yuan/mt. The supply and demand was balanced, but the panic market sentiment dragged down the prices. For example, the prices in East China fell 30-50 yuan/mt, and the prices in south-west China dipped about 30 yuan/mt.

On the demand side, the pre-holiday stockpiles of steel mills were relatively low, resulting in a strong post-holiday demand. On the supply side, steel scrap recycling and processing enterprises have not yet fully recovered, and were reluctance to sell.