WEEKLY: China steel scrap price down but at a slow pace

China’s steel scrap price index under Mysteel’s assessment had reversed down from three weeks of gains but a slow pace of Yuan 14.9/tonne ($2.3/t) on week to Yuan 3,700.8/t on delivery and including the 13% VAT as of June 25, as the continuing softening in the domestic steel prices had finally caught up with the scrap market, market insiders explained.

“The decline in domestic steel prices has squeezed the profit margins of Chinese steel mills, forcing some to reduce their output and demand for scrap has ebbed and the raw material price has, thus, been dampened,” a Shanghai-based market watcher commented. As of June25, China’s national price of HRB400E 20mm dia rebar under Mysteel’s