Research

Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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January 2019 | Steel Scrap and Metallics Forecaster


Chinese scrap prices unlikely to stay high while steel margins remain under pressure: China Market Analysis


Market activity in November demonstrated that scrap consumption will slip if prices become too uncompetitive.

Scrap prices rose at the start of January, tightening mill margins. After a drop in December, Chinese heavy scrap prices regained $20 in January to an average of $396 per tonne delivered incl. VAT. But this most recent price movement has been disastrous for Chinese steelmaking margins. January’s average margin between scrap and local rebar prices was $132, the lowest monthly average observed since the low-margin days of October 2016 (see first chart), below a long term average of $158 (since 2014). Meanwhile, the average margin for rebar to hot...

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