The hottest June is scorching, and the scrap marke

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In June, the scorching sun was like fire, and the scrap market was "rising"

since May, the scrap market has always maintained a tepid market trend. However, since the weekend, there has been a wave of generally rising market in the scrap market. However, at present, the rising steel mills are concentrated in the north, and most of the southern steel mills have not changed, but some freight yards in the South have received goods with rising prices. According to the survey, 30 of the 100 domestic scrap steel markets rose this weekend, while the rest remained stable for the time being. For the short-term market, the scrap market will continue to run up. The main reasons are as follows:

to avoid scratching sandpaper and polishing fabrics 1 At present, scrap resources are in short supply in the northern market. In June, many places in the North ushered in the wheat harvest season, while the South gradually entered the plum rain season, which affected the arrival of scrap steel. According to the survey, since last week, the arrival of scrap steel in most steel mills was lower than the consumption. Steel mills that used to press cars often have fewer vehicles at the scrap unloading site at present. In order to attract the source of goods, most steel mills in the north will raise the price to receive goods, while the price rise of steel mills in the north will attract the source of goods in the south, especially the scrap resources in Jiangsu and Zhejiang, resulting in the gradual rise of scrap purchase prices in some small factories and freight yards in the south

2. The price difference between rebar and scrap hit a new high this year, and the profit of scrap steel used by steel mills increased. As can be seen from the figure below, the current price difference between tertiary rebar and scrap in Jiangsu, Zhejiang and Shanghai is 1740 yuan/ton, a new high this year, which will support the rise in scrap prices. At present, the inventory of elastomer modified asphalt waterproof coiled material gb18242 (2) 008 in steel enterprises is basically at the low point of the year. At present, the environmental protection inspection in many places is relatively strong. Some steel mills have limited production, and the finished material resources are relatively tight. In the later stage, the finished material price also has room to rise, which is beneficial to the scrap steel market

3. At present, the market has a strong desire to rise. According to the survey of 100 scrap traders, 81.5% continued to be bullish in the future, and the market mentality was positive. At present, traders need to bear more tests for this product and receive goods actively. In order to complete the contract volume, some even receive goods at increased prices. It is expected that the scrap steel market will become stronger in the short term

on the whole, the recent rise in the spot and futures of building materials has boosted market confidence, and the shortage of scrap market resources is the leading factor supporting the rise in scrap prices. In addition, with the upcoming Dragon Boat Festival holiday, steel mills have a demand for stock, so it is expected that the scrap market will maintain a strong trend before the Dragon Boat Festival

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