Insights into the steel market by Haihao Group: providing professional analysis for clients
As the year 2024 unfolds, Haihao Group has been closely monitoring the changes in the domestic steel scrap market and would like to share recent market dynamics.
Last week, the domestic steel scrap market continued its trend of relatively strong performance. Merchants faced challenges in receiving goods, while the situation for steel enterprises was moderately better. Despite this, there has been an increased enthusiasm in purchasing steel scrap, and the willingness to use scrap steel remains considerable. Specifically, the average purchase prices for heavy, medium, and uniform scrap steel increased by 47 yuan/ton, 53 yuan/ton, and 60 yuan/ton, respectively, compared to the previous week.
P355NH material enhancing ship fire systems
The robust performance of the construction steel market has positively influenced sentiment in the steel scrap market. The current scarcity of resources in the steel scrap market has made it difficult for bases to receive shipments, prompting many merchants to keep their inventories at low levels to avoid risks. Due to the generally poor profitability of steel enterprises in 2023, winter storage of scrap steel has been cautious, resulting in a significant difference in scrap steel inventory compared to previous years. However, steel enterprises with low inventory levels may still have the possibility of continuing to increase the purchase price of scrap steel.
In the East China region, scrap steel prices have continued to rise, with increased willingness for bases to ship and relatively better situations for steel enterprises receiving goods, leading to a slight increase in inventory. The purchase prices for heavy scrap steel from key enterprises such as Nangang, Shagang, and Xingcheng Special Steel have seen upward adjustments.
Carbon steel flanges and pipe fittings
In the Central China region, the scrap steel market is running steadily with a slight strength. The market resources are relatively tight, base shipments are at a low level, and merchants are hopeful for a price increase. Purchase prices for heavy scrap steel in Ansteel, Wugang, and Hunan Iron and Steel have experienced upward adjustments.
In the South China region, scrap steel prices have risen significantly, with a strong bullish sentiment among merchants. However, the willingness to ship goods is not strong, and the strong demand from steel enterprises has driven price increases. Purchase prices for heavy scrap steel from enterprises like Sansteel Mingguang, Shaogang, and Angang Liangang have experienced upward adjustments.
In other regions, scrap steel prices have also shown a trend of slight increases, with a relatively balanced market supply and demand.
Overall, in the short term, the domestic scrap steel market is expected to operate within a narrow range. Haihao Group will continue to monitor market dynamics and provide professional analysis and support for clients.