Steel scrap prices in the Chinese market increased on February 22

On February 22, steel scrap prices in most regions of China increased overall. Price increase in eastern China is 20-50 yuan/mt ($3-7/mt); 30 yuan/mt ($4/mt) in Yunnan and elsewhere; 20-40 yuan/mt ($3-6/mt) in northern China; An increase of 20 yuan/mt ($3/mt) was seen in some regions in southern China, central China and northwest China. It is also seen that the relationship between supply and demand will continue to improve.

On the supply side, steel scrap prices have increased recently. The mills were reluctant to sell, which made it difficult for steel mills to purchase steel scrap. On the demand side, the average operating ratio of EAF factories increased by 4.67 points week on week to 44.3%, according to SMM research. Recently, the sales of steel mills have improved and stimulated production. However, most mills were unable to increase production due to insufficient steel scrap supplies. In the short term, the competition between supply and demand for steel scrap will intensify and steel scrap prices will increase.