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Scrap is differentiated and quality resources supply is still tight
  • 2017-02-28
 This is Cong Shine one reliable stainless steel supply. Now let us share steel scrap news with you .

At present scrap steel market clinch a deal obviously after China Spring festival. Compared to previous years, Intermediate frequency furnace events make the market to start more difficult than we imagined.According to agency statistics, until February 17 fine burden price in the domestic market is still rising. The increase is 95 yuan/ton. Due to harsh policy environment currently many market participants are worried when it ends.

Institutional analysts says scrap have more advantage compared with the cost of hot metal obvious especial for stainless steel scrap. Although the price of coke declined slightly, ore prices was increasing strongly . Hot metal cost is still high. Scrap steel prices is not much up due to lack of supply since February but it still maintains in a larger range.Considing market actual situation, part of converter steel mills have increased the scrap consumption. It includs some original electric arc furnace of intermediate frequency furnace steel. The electric arc furnace capacity is back in the highly profit power. It keeps banalance between scrap steel supply and demand gap caused by the production of intermediate frequency furnace.

Moreover intermediate frequency furnace production boost the downstream market expectations. Manufacturers generally agree it is bullish on stainless steel prices based on a slow rebound terminal steel demand.The policy and pressure of environmental protection may change it in short time but it will be limited for a long time.

The important is the difference between the current finished steel and scrap steel. Until February 17, tangshan factory taxed billet steel price is 3160 yuan/ton. It excel the reasonable range  600yuan/ton with scrap. The low price of the downstream steel make it difficult to impact on scrap steel market.On the contrast, the market will be affected easily by the  steel scrap inventory and supply and demand situation.

According to the agency estimation, until the beginning of this month China's dominant 45 steel scrap inventory is about 990000 tons. It is 130000 tons less than before the Spring Festival. Due to China Spring festival steel mills are mainly consumed inventory for around 20days.Then steel mills are inventory demand.

 Compared to expectations, intermediate frequency furnace manufacturer short-term rehabilitation is hopeless, but scrap steel market is not a glut of state.Because of strict quality control of converter steel scrap resource division is more clearly. In the scrap consumption improvement situation on converter steel mills, high-quality resources is tight relatively.

Moreover the current upstream machinery, accessories factory just started. Scrap steel scraps from the output is limited.And because the finished steel prices rise far above the scrap steel. It leads to new goods ex-factory price on the high side. It limits the flow of resources in the other side.

   

Then even if the current market show scrap steel trading volume is up gradually. part of the price high steel mills in the arrival of the goods is more, but on the whole, under the condition of high profits in the current finished product (according to agency statistics, tangshan billet profit is 273 yuan/ton, hot roll of profit is 650 yuan/ton), in order to guarantee the stability of the loading quantity, steel callback quotation will be very cautious.Even under the situation of a sharp fall in steel prices, steel scrap prices in the short-term callback also need not excessive worry, medium and long-term steady growth rhythm of upper middle line is relatively clear.So, despite the current market feedback, scrap steel trading volume gradually picks up . Parts of the high price steel mills received lots of material. but under the condition of high profits in the current finished product (according to agency statistics, tangshan billet profit is 273 yuan/ton, hot roll of profit is 650 yuan/ton) in order to guarantee the stability of the loading quantity, steel callback quotation will be very cautious.Even If steel sharp fall, steel scrap callback prices still won’t be down accordingly in the short-term. In medium and long-term it is clear to steady growth rhythm of upper on steel sharp especial for stainless steel scrap.  As the reliable stainless steel supply Cong Shine confirm it .

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