Steel Scrap Inventory Held by Steel Mills Climb to a High Level in March amid Intensified Game Between Buyers and Sellers

SHANGHAI, Apr 12 (SMM) - The average daily steel scrap arrival across 110 steel mills surveyed by SMM stood at 249,000 mt in March, up 41.4% from February when the figure was 176,000 mt. As of March 31, the steel scrap inventory carried by the mainstream steel mills was 2.44 million mt, up 17.1% MoM. The average daily arrival at steel mills increased sharply. On one hand, the scrap recycling fully resumed in March. On the other hand, Chinese steel mills resumed production on a large steel after the Chinese New Year (CNY) holiday. Steel prices fluctuated widely in the month, the game between buyers and sellers intensified. The rhythm of delivery from processing plants and purchases from steel mills both moved abnormally. Most steel mills increased the scrap stocks with the rise in capacity utilisation rates and the high production efficiency in March. In April, the scrap consumption by steel mills may decrease. At the same time, with the decline in steel prices, the profits of most steel mills will shrink. It is expected that the steel scrap inventory carried by steel mills may decline.