Last week, the domestic scrap market is weak adjustment, merchants are cautious in receiving goods, inventory remains low, the arrival of steel slightly increased, but the weak demand for scrap is difficult to change, scrap market continues to maintain the "weak supply and demand" pattern. Average scrap purchase price of key steel enterprises compared with the previous week, heavy scrap prices down 50 yuan/ton, medium scrap prices down 59 yuan/ton, scrap prices down 70 yuan/ton.
In May, China's daily crude steel output of 3,116,500 tons, a month-on-month growth of 0.8%, but the stock continued to increase, the price of wide downward, steel profits were further compressed, resulting in insufficient scrap price support, all the way down. Last Tuesday, Shagang scrap purchase price led by 50 yuan/ton, most of the surrounding steel scrap purchase prices have followed down. Last Friday, shagang scrap purchase price fell 50 yuan/ton, business confi dence seriously frustrated, scrap market weak atmosphere. At present, the production enthusiasm of steel mills is weakened, the willingness to use scrap is low, and most of the procurement is on demand. At the same time, considering the weakening of the cost end support, it is expected that the scrap market will be weak in the short term.
East China scrap market continues to be weak, coke prices rise, steel profits are compressed again, scrap processing base to reduce the amount of goods received. Nangang heavy scrap purchase price is 3590 yuan/ton, reduced by 100 yuan/ton; Shagang heavy scrap purchase price of 3780 yuan/ton, reduced by 100 yuan/ton; Xingcheng Special Steel heavy scrap purchase price is 3780 yuan/ton, reduced by 100 yuan/ton; Maanshan Heavy steel scrap purchase price is 3630 yuan/ton, reduced by 100 yuan/ton; Tongling Fuxin heavy scrap purchase price is 3850 yuan/ton; The bidding price of steel bar cutting head of Shangang Laigang is 4110 yuan/ton; Xiwang Metal boutique heavy scrap purchase price of 3821 yuan/ton, reduced by 99 yuan/ton; Ningbo Iron and Steel in June heavy scrap purchase base price is 3560 yuan/ton.
Central China scrap market weak operation, businesses bearish market, more pressure to receive goods, scrap market transaction is tepid, steel arrival in general. Angang heavy scrap purchase price of 3780 yuan/ton, reduced by 90 yuan/ton; Wugang heavy scrap purchase price of 4030 yuan/ton, reduced by 100 yuan/ton; Hunan Iron and Steel Hengsteel grade 1 qualified material purchase price of 3450 yuan/ton, down 40 yuan/ton; Wisco low sulfur block scrap purchase price of 4000 yuan/ton.
South China scrap prices continue to decline, merchants to slow down. Sangang Minguang heavy scrap purchase price is 3760 yuan/ton, reduced by 60 yuan/ton; Shaogang heavy class II scrap cash to factory price of 3350 yuan/ton, down 100 yuan/ton.
The scrap market in southwest China is stable and weak. Affected by the falling price of finished materials, some steel scrap purchasing prices are reduced. The price of heavy steel scrap excluding tax is 3410 yuan/ton, reduced by 50 yuan/ton; Kunming iron and Steel heavy scrap purchase price for 3820 yuan/ton.
Northwest scrap prices slightly lower, market transactions cold, scrap processing base to reduce the amount of goods, inventory at a low level. Xining Special Steel medium grade one qualified material purchase price is 3540 yuan/ton, reduced by 100 yuan/ton; Jiusteel medium scrap price excluding tax is 3325 yuan/ton, up 105 yuan/ton.
Northeast scrap prices down, steel profits were compressed, scrap consumption declined significantly, positive shipping businesses. Lingang heavy scrap purchase price of 3780 yuan/ton, reduced by 60 yuan/ton; Anshan Iron and Steel heavy scrap purchase price of 3899 yuan/ton; Construction longxi Steel (Yichun area) heavy scrap purchase price of 3610 yuan/ton; Fushun Special steel heavy scrap purchase price of 3670 yuan/ton, reduced by 50 yuan/ton.
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Growth in the construction, automotive and consumer slitting line santa fe springs has played a big role in providing the needed boost to the global steel processing industry. The global steel processing industry is projected to grow at a CAGR of 6.86% between 2020 and 2026. Alloy steel is the fastest-growing segment of the global steel processing market and is suitable for all applications.
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Market demand for steel processing is expected to grow by us $642.43 billion by 2020, with a CAGR of 2.16% from 2015 to 2020. Growth in the global construction, consumer electronics and automotive industries has played a huge role in providing the necessary momentum for the global steel processing industry after the economic slowdown of 2007-2009. In addition, the reduction of alternatives to steel has made steel an indispensable part of customers lives. The recovery of the global slitting line santa fe springs economy will also boost demand in the steel processing market.
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