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

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January 2020 | Steel Scrap and Metallics Forecaster

Scrap prices firm in 2019 amid increased demand: China Market Analysis

Firm scrap prices have been driven by increased consumption by steel producers, as crude steel production continued to rise on the back of a falling iron-to-steel ratio in 2019, as can be seen in our second chart alongside, with scrap stepping into the void.

Ferrous scrap prices in China were at a premium over hot metal production costs through most of 2019, continuing a trend that commenced in late 2017. Scrap prices (assessed by Fastmarkets on an east China delivered mill basis) reached a six-year high of 2,860 yuan ($406) per tonne, including tax, in early August and were at a premium over hot metal across most of the year, peaking at $76 per tonne (excluding VAT) in early November, as can be seen in the first chart. The firm scrap price placed pressure on steel producers, with the rebar...


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