Chinese Steel Scrap Market To Be In Tight Balance In April

SHANGHAI, Apr 11 (SMM) – Looking into April, steel scrap supply may be basically unchanged from March as occasional bad weather will hamper recycling activity. According to SMM survey, nine blast furnaces will be restarted in April, which is estimated to drive pig iron output up by 37,900 mt per day. Pig iron output will peak in early-to-mid April following concentrated production resumptions. Some steel mills will raise the share of steel scrap in their production. In terms of EAF-based steel mills, most of them are suffering losses due to falling steel prices and plan to cut their production in the future. It is expected that the domestic steel scrap market will be in a tight balance in April. The real estate market has not shown a significant recovery, while the manufacturing sector is about to enter an off-season, which will suppress steel demand and put its prices at downside risk. As such, steel scrap prices are expected to inch lower in April.