As of December 31, steel scrap prices in Zhangjiagang increased by 100 yuan/mt month on month to 2,660 yuan/mt ($373). Türkiye, the main source of China's steel scrap imports, has offered prices below domestic prices for a long time, according to historical data.
As of December 31, Türkiye's scrap price was at $430/mt, equivalent to 3,405 yuan/mt, which was 44 yuan/mt lower than Shagang Group's purchase price. The price difference between the two countries narrowed by 228 yuan/mt.
In December, domestic steel scrap prices continued to rise, especially as the ferrous metal market has increased since November. The increase in steel scrap had a positive impact especially on EF steel plants, increasing their profits. In addition, the price/performance ratio of steel scrap is more advantageous than pig iron, which encouraged steel mills to increase prices to purchase more steel scrap.
Steel scrap prices are expected to increase in January as well.
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