The rise of steel price is difficult to stimulate the formation of scrap steel

Recently, the market trend of domestic scrap steel is not very optimistic. According to LIAN statistics show that since mid January, Tangshan fine charge price has dropped to 2240 to 2390 yuan / ton, the cumulative decline of 130 yuan / ton; Zhangjiagang Shagang a charge price fell to 2500 yuan / ton, the cumulative decline of 160 yuan / ton. Although the price of steel has risen slightly in recent days, it is expected that the price of scrap steel will still be difficult to go high later.

First of all, from the product market. In recent days, steel prices have risen slightly, but the overall market performance is still more general. After the early plunge, the risk of the steel market was released, and the space for further decline was limited. However, it is expected that the short term steel price uplink space will be limited under the condition that the demand side has no color. The vibration of scrap and other raw materials will be more limited.            Secondly, from the point of view of the steel plant. With the deepening of the steel market, the terminal demand for finished products is more and more depressed. In the case of weak sales of timber, the production enthusiasm of the steel mill is gradually weakening, and the use of waste steel and other raw materials is gradually decreasing.

Finally, from the scrap steel market. Affected by the recent leading steel Shagang scrap purchase price fell continuously, bearish market sentiment significantly enhanced.            According to the above analysis, although the price of finished products is slightly rising in the near future, it has little influence on the scrap steel market. At present, there are a lot of waste steel resources in all parts of the market, and the condition of the arrival of the steel plant is better. In addition, the stock of most steel mills has been at a high level, so the enthusiasm of the short-term steel mills to purchase scrap will be difficult to improve. In addition, in the light of demand, the production enthusiasm of steel mills is gradually decreasing, and the overall consumption of waste steel will decrease. It is expected that the scrap steel market will remain weak in the near future.

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Post time: Mar-01-2018
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