Steel scrap prices to stabilise this week amid ample supply

Steel scrap prices in China largely stood stable with occasional hikes last week. Downstream producers rushed to finish projects toward the end of this year. Moreover, a slight profit uptick stimulated waste recycling companies to step up collection of goods. Under this circumstance, steel scrap supply appeared ample since October. According to SMM research, some steel mills may completely consume steel scrap stocks ahead of the Spring Festival. In addition, steel scrap consumption will increase. Therefore, supply-demand fundamentals may gradually tighten in the next quarter, giving certain support to steel scrap prices. Steel prices may be volatile this week. Steel scrap market may stay rangebound, with price swinging from minus 30 yuan/mt to plus 30 yuan/mt.