The weakness in Chinese domestic steel scrap prices continued throughout the week of May 13-20, while Mysteel's steel scrap price index fell 29.5 Yuan/ton ($4.4/t) week on week to RMB 3,389.7/t on delivery for the second week.
Mysteel Global stated that the significant softening in finished steel prices last week has further tightened steel margins for steelmakers, forcing them to put pressure on steelmaking raw material suppliers, including steel scrap collectors and traders.
As of May 20, China's HRB400E 20mm diameter rebar price decreased by Yuan 107 week on week to Yuan 4,849/t including 13% VAT.
On May 13-20, daily steel scrap consumption of 61 blast furnaces and EAF steelmakers across China averaged 3,102 tons/day, down 1.5% week on week, while daily scrap deliveries to 61 mills sampled showed a larger decrease. Average 2.935 tons/day with 6.1% per week.
The significant cut in deliveries saw steel scrap inventories at 61 steel mills drop 71,200 tons, or 3.1 percent, week on week, to 2.23 million tons as of May 19.
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