WEEKLY: China steel scrap prices weaken at slow pace

The weakness witnessed recently in China’s domestic steel scrap market persisted over the week of June 12-19, with Mysteel’s steel scrap price index edging down by Yuan 12.4/tonne ($1.8/t) on week to Yuan 2,478.6/t on delivery to steel plants and including the 13% VAT, according to a Shanghai-based market source. The recent fall in finished steel prices softened scrap, market insiders explained.

“Partly due to the weakening conditions in the finished steel market, domestic steel scrap prices began to trend down but at a slower pace,”a Shanghai-based market watcher commented. “The decline in steel prices squeezed the profit margins of some steel mills, forcing them to lower their scrap buying prices to reduce production costs,”she