Haihao Group monitors changes in raw material market
In the aftermath of the Spring Festival, the domestic scrap steel market is experiencing a sluggish trend, characterized by low trading activity and limited circulation resources. Processing enterprises are resuming work at a slower pace, resulting in steel mill arrivals generally falling below consumption levels. Key steel enterprises have adjusted their average purchasing prices for scrap steel compared to the previous period (January 27th to February 2nd), with heavy scrap steel prices down by 9 RMB/ton, medium scrap steel prices down by 11 RMB/ton, and mixed scrap steel prices down by 20 RMB/ton.
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Recently, steel futures markets have been fluctuating, compounded by the implementation of the third round of coke price reductions. With insufficient support for scrap steel prices, steel mills are adjusting their purchasing prices downwards. Currently, the scrap steel market is still in the recovery stage, with most processing enterprises yet to resume operations. Additionally, adverse weather conditions such as rain and snow have impacted scrap steel receipts and transportation, resulting in low enthusiasm among merchants for delivery. Short-process steel mills are expected to gradually resume production in the near future, which may lead to an increase in demand for scrap steel. Therefore, it is anticipated that domestic scrap steel prices will remain relatively stable in the short term, with minor adjustments prevailing.
In the East China region, scrap steel prices remain stable overall, but market transactions are relatively poor, and steel mill arrivals are relatively low. Prices for heavy scrap steel in various steel mills range from 2,700 RMB/ton to 3,140 RMB/ton.
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In the Central China region, the scrap steel market is running relatively steadily, but transportation difficulties due to low temperatures and rainy weather have resulted in poor steel mill arrivals. Prices for heavy scrap steel in various steel mills range from 2,700 RMB/ton to 3,210 RMB/ton.
In the South China region, scrap steel prices are weak and stable, with long-process steel mills mainly focusing on consuming inventory materials. Prices for heavy scrap steel in various steel mills range from 2,800 RMB/ton to 3,120 RMB/ton.
In the Southwest region, the scrap steel market is weak, with low operating rates in processing yards and low enthusiasm for delivery among merchants. Prices for heavy scrap steel in various steel mills range from 2,730 RMB/ton to 2,900 RMB/ton.
In the Northwest region, the scrap steel market is stable, with minimal arrivals and shipments at various bases, and steel mill scrap steel inventories mostly at low levels. Prices for heavy scrap steel in various steel mills range from 2,830 RMB/ton to 2,840 RMB/ton.
In the Northeast region, scrap steel prices are generally stable, but with coke price reductions and insufficient cost advantages of using scrap steel for smelting, coupled with poor profitability of steel enterprises, production enthusiasm is weak. Prices for heavy scrap steel in various steel mills range from 2,850 RMB/ton to 3,221 RMB/ton.
In the North China region, the scrap steel market is stable, with many bases in a state of suspension, resulting in a sluggish market and low steel mill inventories. Prices for heavy scrap steel in various steel mills range from 2,845 RMB/ton to 3,230 RMB/ton.