Policy support vs. crude steel shadow: China's scrap market outlook

The People's Bank of China (PBoC) has introduced a package of monetary policies to strengthen macroeconomic regulation, including reductions in the policy interest rate and the reserve requirement ratio (RRR), as announced during a press conference held by the State Council Information Office on May 7 (see Appendix).

However, China's scrap steel market had a generally tepid reaction, weaker-than-anticipated, with prices falling after a brief rebound. Meanwhile, rumors surrounding crude steel production cuts re-altered the market. Against this backdrop, this article analyzes the near-term outlook for China's scrap steel market. Weakening Scrap Steel Market in 2025 China's scrap market