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Scrap has become a hot commodity, scrap can rise to when?

2021-03-03 13:12:36

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Author:   Wanzhi

Scrap steel, originally refers to the steel plant production process can not become the corners of the product waste, later, people will scrap machinery and equipment, the steel materials in the components, get rid of the scrap iron, collectively known as scrap steel.

According to information provided by relevant departments, in 2019, the world will produce about 400 million tons of scrap steel, accounting for about 45~50% of the world's total steel production in that year, of which 85~90% scrap steel can continue to be used as raw materials for steelmaking, the rest of the scrap steel can be used for casting, ironmaking and recycled steel.

According to incomplete statistics, China can produce about 30 million tons of scrap steel every year, but because the demand for steel is also growing rapidly, therefore, China's annual demand for scrap steel is also growing rapidly. Only in 2020, China's demand for scrap steel has exceeded 35 million tons, and the demand gap for scrap steel has reached 5 million tons.

In the case of scrap steel demand greater than supply, the price of scrap steel is also rising, in early 2020, the average price of scrap steel is only 2100 yuan/ton, and in February this year, the price of scrap steel had soared to 3500 yuan/ton, although now scrap steel prices fell back, but the lowest price will not less than 3000 yuan/ton.

Scrap prices rise, in addition to scrap resources are limited, but also benefited from the rising price of rebar. As of March 30, 2021, the price of rebar has risen to 4,964 yuan/ton, an increase of more than 50% compared with the price of more than 3,300 yuan/ton in April 2020. Under the background of rising rebar price, each steel mill in order to compete for the limited scrap resources, will naturally raise the purchase price of scrap steel.

According to the domestic scrap steel division of a information platform of a director, said: according to the current steel demand for steel scrap, scrap steel prices may continue to rise in small increments, concrete can increase how much, must look at downstream product selling prices of steel, a ton of rebar smelting cost is about 1200 yuan - 1300 yuan, now mills using blast furnace steel-making profits around 700 yuan/ton; And the profit of electric furnace steelmaking is about 300--400 yuan/ton, all steel mills need to keep their profits, these costs and profits rarely change, and lead to changes in the price of scrap steel is the sales price of rebar. It is estimated that the purchase price of scrap steel can hardly be higher than 3,500 yuan per ton.


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