After slightly rising from $376/ton on March 22, 2024, scrap prices sharply declined to $357.00 USD on April 2. Following this decline, scrap prices rose by 3.25% and reached $369.00 USD on April 3.
The desire of traders to invest in rising prices is one of the most significant reasons for the increase in scrap prices. The slowdown in shipments is also reducing scrap supply and causing prices to rise.
Some cargo terminals are closed due to the Qingming Festival holiday, further reducing the amount of scrap reaching steel factories and contributing to the price increase. Additionally, adverse weather conditions in some regions are hindering logistics and transportation, further driving up scrap prices.
The future trajectory of scrap prices remains uncertain. The recent recovery in the futures market and the increase in market confidence indicate that prices may continue to rise. However, high inventory levels and narrowing profit margins for steel producers may limit upward price movements.
In the short term, scrap prices are expected to mostly follow a stable trajectory and fluctuate within a narrow range.
Comments
No comment yet.