Demand for scrap in East China’s Jiangsu is rising with the returning of small to medium sized steel mills since last weekend. As of February 18, mainstream purchase price offered by large to medium sized mills for 6 to 10mm scrap and prime scrap is CNY 2860 to CNY 2900 per tonne and CNY 2920 to CNY 2980 per tonne.
SteelHome believe local mills, to replenish stocks, will raise their purchase prices perhaps by CNY 50 to CNY 100 per tonne because: a) price differential between rebar and scrap has been temporarily steady at 1050-1100 yuan/mt since the returning; b)stocks fall at plants after a consumption during the holiday; c) spot market is tight.
Currently we have already learnt part buyers offers a price markup of as much as CNY 200 per tonne for suppliers who can complete large orders in 10 days after the Chinese New Year Holiday.
Source - www.steelhome.cn/en