Chinese scrap market was unstably going up and down last week, but the stocks decreased and the gross spread reduced between southern and northern China. This year the buying willingness of the factories was very passive because they had to control the cost and profit.
China scrap price stopped dropping recently because downstream transaction were doing well. On the other hand, lots of profitable news were heard in the market, such as tax reduction from 16% to 13%, level promotion of industry, high quality economic development and so on.
So overall, steel price rebounded and the production lines of some small factories were recovered. Besides, the stock wasn’t left so much last quarter so the price might rise as well.