Tight supply and high costs support scrap prices

摘要

The CRU metallics price indicator (CRUmpi) for December rose by 1.4 m/m, to 302.4. Scrap prices have found support from lower supply and high input costs even though global demand for scrap is weak due to poor apparent steel consumption in key markets. Across regions, scrap prices have stabilised or increased, supported by seasonal weather disruption and inflated freight rates. This coupled with improved sentiment, following China’s Covid-19 restriction relaxation, has triggered a wave of restocking.