Since the beginning of June, the price of scrap steel in China has continued to rise. Until the first ten days of July, the highest price of the year has been set in most parts of the country, while some high-quality resources are still rising. How long can this situation last?

As of July 18, the cutting head of 10 cm steel bars in Tangshan area has been renewed to a new high level, and the settlement price of the steel bars to the factory excluding tax has reached 2790 yuan / ton, and some of them can reach 2800 yuan / ton. According to the analysis of the industry, it is expected that the scrap price in China will continue to rise, and there is still room for 50 yuan / ton to rise and fall from the highest point in the year, and there is little possibility of a sharp drop in the market in July.

On the supply side, the scrap market remains in a tight situation. On the one hand, at present, there are many hot and rainy weather in China, which has a certain impact on scrap processing and transportation; on the other hand, the environmental impact still exists, the demolition process is slow everywhere, and the production of some freight yards and processing enterprises is still abnormal, affecting the available resources of scrap market.

In terms of demand, the overall change is not big in the near future, but due to the low profit of the steel plant, the on-demand procurement is still maintained. With the continuous deepening of environmental protection, the demand for converter scrap is slightly lower than that in the first half of the year, but it is not obvious. However, in the later stage, the environmental protection and production restriction are still expected to increase, and there is a risk of a slight decline in scrap demand.

In terms of market mentality, as the price continues to rise, the scrap steel market is more cautious and optimistic at present, and it is difficult for traders and freight yards to acquire at present, and the actual shipment process is slow. According to the market feedback, most of the freight yards and processing enterprises have few scrap stocks, and the scrap social storage is at a low level.

To sum up, before the end of the month, there are still many opportunities for scrap to continue to refresh its high position.