Scrap and other metallics’ prices fall following weak buying interest

摘要

The CRU metallics price indicator (CRUmpi) registered its third consecutive double-digit percentage decline in July, falling by 18.5 m/m to its lowest value since Feb-21 to 313.9. Bearish sentiment in the metallics market, prevalent since May-22, has been exacerbated by rising inflation, weakening steel demand, prices, margins, and resultant steel production cuts across major economies. Key buyers continue to report sufficiently stocked inventories, while demand destruction continues unabated in finished steel markets, forcing steelmakers to even curtail BOF-based steel output alongside that of EAFs. Moreover, the support to prices that was anticipated for China given easing pandemic controls has not materialised, and underlying demand recovery remains far below market expectation.