The scrap production from China’s Jiangsu is gradually decreasing, and recycle processing enterprises were difficult to take delivery of goods due to the coming Lunar New Year and the Covid-19 epidemic. Therefore, the scrap prices in the short term might be supported by the tight supply.

The end constructions were almost completed, and the steel demand will further go down. The traders in Jiangsu are preparing to go on vacation, so the market resource would be tightened. The prices were higher than the market expected; therefore, most traders stockpiled passively. In addition, steel mills were unwilling to purchase scrap, so the supply might maintain at a low level.

Steel mills in Jiangsu were expected to resume work around Spring Lantern Festival, and the market would recover with increased demand. Also, steel peak seasons, March and April, were expected to boost steel demand, so the scrap market would rebound.