Industry sources told Fast Market that on Friday, March 5th, China's iron and steel futures plunged and spot prices plunged, keeping buyers away from the import market.
The overnight price drop of rebar, hot-rolled coil and iron ore futures has suppressed the buying interest, and the bid for importing HRS101 heavy waste (HS) is $500-$502 per ton of CFR China.
The seller's offer is $510 per ton CFR China. Major market participants estimate that the price is $505-$510 per ton CFR China.
A Singaporean trader said: "Any offer from China that is higher than $510 per ton CFR will not work, because domestic prices are falling and China steel mills are unlikely to accept it."
This is especially true after the rebar price in East China fell by 80-90 yuan RMB (US$ 12.36-13.91) per ton to 4,640-4 RMB per ton on Friday, and 670 yuan RMB. Fastmarkets learned that although major steel mills in Jiangsu maintained their domestic scrap purchase price at 3,350-3,390 yuan, some small steel mills lowered their purchase price by 20-5 per ton last Friday.
According to sources, the previous trading price of China traders was $510-$515 per ton CFR China, which no longer represented the spot market.
On Friday, the price of scrap steel and heavy-duty recycled steel materials in the fast market was estimated as $ 505-510 per ton in CFR China, down $5 from $510-515 per ton in the previous trading day.
Wednesday's delivery of 180,000 tons of Japanese scrap steel to major buyers in South Korea also upset buyers, who were intimidated by oversupply. This is especially true, because the buyer only bought 60,000 tons of high-grade Shindachi and HS scrap steel at the price of 48,500 yen (US$ 454) and 47,500 yen per ton FOB Japan, respectively.
Last Friday, another Korean steel producer bid for Japanese H2 scrap at a price of 43,000 yen per ton FOB. It is worth noting that the bid price is 500 yen/ton lower than that of the first steel plant for the same level.
Trader sources said: "Sellers are seeking to cash in and make a profit, which is why some people in the market think that the price may reach its peak in a short time."
A source from a Japanese scrap supplier said: "I feel that the market is about to reach the peak, or maybe we have already stood at the peak."
In the "Double Recession" held at the annual meeting of China's top legislative and political advisory body, the uncertainty of industrial laws and regulations also aroused wavering emotions.
Market sources expect that there will be a series of announcements after the meeting, including tightening the money supply to reduce quantitative easing and prevent financial markets from overheating.