Buyers' activity in the steel scrap import market remained low on Tuesday July 6 despite rising contracts for rebar and hot-rolled coil on the Shanghai Futures Exchange.
"Market chatter on mills cutting production has turned the finished steel markets bullish, so raw materials [markets] followed. This is why rebar and HRC rose higher than iron ore in the futures market today," a Zhejiang-based trader said."We are hearing that some major Chinese steel mills are implementing production cuts. Some of the mills are planning to decrease their domestic scrap intake volume. Surely this is bad news...