CHINA STEEL SCRAP: Prices surge on bullish Q2 sentiment, international boost

Import prices for high-grade steel scrap into the key Chinese market surged on Thursday February 25 due to increasingly bullish sentiment in the domestic scrap markets and jumps in international ferrous scrap prices.

Sources said that Chinese steel mills are now able to purchase at $480-485 per tonne cfr China for high-grade Japanese HS materials after negotiation, while sellers have hiked offers to $500-510 per tonne cfr China.
Key market participants in China and Japan believe the tradeable price range was at $480-490 per tonne cfr China amid steel mills’ increased appetite for higher-priced imports and domestic supply.

Major Chinese steel mills such as Shagang will raise its scrap purchase price by 100 yuan ($10) per tonne from February 26, with domestic scrap market participants expecting appetite to remain strong in the second quarter of 2020 due to the seasonal demand for construction steel amid...

Published

Lee Allen

Jessica Zong

Paul Lim

February 25, 2021

11:25 GMT

Singapore, Shanghai