The decline in scrap steel inventories has expanded, consumption has fallen, and profits have shrunk
Last week, the national scrap steel market was relatively strong as a whole. Jiangsu Shagang’s scrap steel purchase price was raised twice in a week, accumulatively rising by 200 yuan/ton. Although the price after the increase was not higher than the local market, it was a lagging increase operation. There is still a big positive push. During the week, except for some areas where prices fluctuated due to the epidemic, they basically maintained a strong upward trend. With the strengthening of prices, the arrivals of steel mills have significantly decreased, the sentiment of suppliers’ shipments has weakened, and the decline in scrap steel inventories of steel mills has expanded. At the same time, the market reflects that the current volume of raw material purchases has decreased significantly compared with previous years, regardless of whether construction sites are scrapped or scrapped. Or industrial waste has declined to varying degrees, its own inventory is low, and the ability of market prices to withstand pressure has increased. At the same time, as the overall price of scrap steel increased more than the thread last week, the profits of electric furnace plants shrank again, which had a greater inhibitory effect on the market outlook....
View More