This week, the steel scrap market fluctuated upward. As of July 26, the domestic mainstream scrap market was quoted at 3,481.81 RMB/ton, an increase of 0.67% from last Monday.
At the beginning of the week, futures rebar tended to be red, which promoted spot prices. Scrap merchants were willing to purchase. However, due to weather factors, scrap transportation and processing costs increased, resulting in tight scrap supply. Some regions adjusted their prices according to their own inventories, and scrap prices were running strongly. In the middle of the week, due to the impact of the restricted production policy, the output declined, coupled with the weakening of the demand for steel scrap by downstream customers, and the price rebounded.
In summary, steel scrap prices fluctuated upwards last week, but steel companies’production restrictions have restrained prices from rising continuously. SunSirs’analysts believe that scrap prices will remain stable this week. Mainly affected by heavy rains and limited production and electricity, the demand for finished products is not high, resulting in a lack of support for scrap prices.