MYSTEEL: China scrap prices to come under pressure in '23

Chinese steel scrap prices will probably face downward pressure this year from the predicted fall in finished steel prices and the anticipated slight increase in scrap supply, according to Mysteel's newly-published forecast for the sector this year. On the other hand, scrap consumption will slide throughout the course of the year, the report suggests.

Domestic ferrous scrap prices have been declining since 2020, and by end-December last year, the average composite steel scrap price for 2022 was at Yuan 3,380.4/tonne ($500.3/t), significantly lower than the 2021 average of Yuan 3,491.6/t, according to Mysteel's database. During 2023, Chinese steel prices are likely to drop –