Sino-Global Information: Using Waste Profit Deviation, Short-term Scrap Steel Price Fluctuation Range Narrows

Since early April, scrap steel prices have experienced narrow and weak adjustments. The average price for 6-8mm heavy scrap according to Fubao Information is currently 2,243 yuan per ton, down 3 yuan per ton from the beginning of the month. Due to the recent weakening performance of downstream finished product prices, steel mills’ profit margins on scrap have been significantly affected, and electric furnace enterprises’ flat electric profits remain generally in loss, leading to low enthusiasm for steel mills to use scrap; from the supply perspective, currently, the inventory of raw material resources at the site is relatively low, and the output of qualified materials is below the same period level, providing some support to current scrap steel prices. In the short term, the fluctuation range of scrap steel prices will narrow. (Zhuochuang Information)