State of the international scrap metal market

As the steel mills cut their scrap purchases, prices fell every month, and when the price of scrap reached a minimum, the mills began to buy material at a lower price. So when steel mills started buying again this year, scrap prices jumped.

World scrap prices are still on the rise as the Chinese iron and steel industry has reduced its stocks to too low levels. Steel prices have jumped, but, in essence, the question of the superiority of steel supply over demand remains. This means that steel prices in China will fall again and international scrap prices will also fall.

Scrap metal is a fundamental competitor to cast iron. Even with an increase in iron ore and coal prices, it is still cheaper to make steel from pig iron than to buy scrap steel. Therefore, the purchase of scrap metal will be low.