China’s steel scrap market is seen holding firm in the second half year of 2019, mainly due to likely strong demand among domestic steelmakers amid tight supplies, according to a market watcher Tuesday. As of June 28, Mysteel’s benchmark steel scrap price index had jumped by a total of Yuan 56/tonne ($8.1) from the end of last year to settle at Yuan 2,543.9/t on delivery to mills and including the 13% VAT. The price was also Yuan 370/t higher from one year before.
“China’s steel scrap prices may hover high at Yuan 2,300-2,500/t excluding the 13% VAT in the coming six months,”a Shanghai-based scrap analyst predicted, adding that “it’s difficult to imagine any impressive growth in domestic steel scrap availability this year seeing that manufacturing industry is weakening.” Jiangsu Shagang Group (Shagang), China’s largest
Source: Mysteel