Major mills in China paid higher prices for domestic scrap amid bullish sentiment in the finished steel markets on Friday September 3, providing support for imported scrap spot prices, sources told Fastmarkets.
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The purchase prices for domestic steel scrap from Chinese mills rebounded in the week amid bullish sentiment in the finished steel products markets.
The most-traded rebar and hot-rolled coil futures contract on the Shanghai Futures Exchange (SHFE) ended daytime trading 2.37% and 4.25% higher respectively on Friday September 3.
Fastmarkets' weekly price assessment for
steel scrap heavy scrap, domestic, delivered mill China was 3,670-3,790 yuan ($568-587) per tonne on September 3, widening upward by 80 yuan from 3,670-3,710 yuan on August 27. Disregarding VAT, that puts the China domestic scrap price at $494-510 per tonne.
"Some major mills in Jiangsu province raised their buy prices on Friday to increase their scrap arrival volume. Many mills from other regions followed suit. The domestic...