Chinese steel demand drives scrap prices higher

摘要

Scrap prices have risen strongly in August. Although prices typically do rise in the month, the strength of the gain has surprised market participants, particularly as supply was expected to expand faster than demand. Strong Chinese demand for finished steel has meant mills there have been increasing domestic and export prices. This demand has led to Chinese imports of steel, in turn resulting in greater than normal scrap demand in Asia. Additionally, healthy Turkish domestic steel demand has offset weaker export volumes from there and sustained scrap demand.