UTC+8 ( BJT)

Infograph: Scrap Prices Resilient Despite Stocks Build-up

Steel scrap stocks at China’s 61 blast-furnace and electric-arc-furnace steel producers increased for the third straight week over November 13-19, rising 14.1% on week or 20.1% on month to 3 million tonnes. Some mills were rebuilding scrap inventories for their near-term production and for winter, sources said.

The firm demand of steelmakers led Mysteel’s scrap pricing index to strengthen to a 7.5-year high of Yuan 2,697.7/tonne ($409.2/t) on delivery and including the 13% VAT as of November 24, up Yuan 13.1/t on week or Yuan 120/t on month. 

Going forward, Chinese scrap prices are seen staying high, as demand for scrap will remain firm and supply challenged by collection disruptions during winter.