Nonferrous Scrap, China, Asia

After the Lantern Festival, the conditions for processors of scrap zinc in the market in general did not return to normal, mainly due to manpower problems. The majority of manufacturers had fewer workers than before the Lantern Festival compared to previous years. Subject to inflationary pressures and increased salaries of workers themselves, more workers stayed home, so even if the orders were normal, operating rates were also affected. Businesses have ample supply of raw materials before the Spring Festival is a factor, but it is less of a factor than the operating rate after the holiday. Overall, however, market participants are still optimistic about the market outlook for zinc and generally hold a bullish mentality. In southern China's largest zinc storage area, the storage volume of spot zinc in Nanchu was no more than 100,000 tons, a decrease compared to before the holiday, which the market will support. SHFE (Shanghai Futures Exchange) zinc exceeded RMB20,000 and showed slow, slight gain.The overall trend of trading was on the strong side, stimulating the spot zinc prices to rise. Alloy plants have entered normal operations and orders have increased.

In the Chinese New Year holiday period, the LME had a strong surge in nickel prices and stood on the $28,000 per ton level, a rebound from the past two years and a new high. The nickel market in China followed after the market after opening in response to it in three consecutive increases. Jinchuan Nickel Group raised its ex-factory price to RMB215,000 per ton. In view of the overall strength of bulk metal prices, nickel prices were particularly prominent in the peripheral, to some extent which has stimulated operators to accelerate the pace of scrap stainless steel market. From after the Lantern Festival, stainless steel scrap recyclers have basically returned to normal operation.

Many providers are still eager to sell their cargo hold of reserves of scrap before the holiday and look forward to the opportunity to further price increases. According to some providers, the current market price of stainless steel scrap is expected to run up in the short term. In addition, some scrap holders, in order to reduce risks before the Spring Festival, had reduced the amount of stainless steel scrap spot inventory. But after the holiday, the market showed a rapid warm-up, which led to replenishment, which also led to scrap prices rising. Affected by this, scrap operators have changed the attitude of being reluctant to sell and have shipped for cash profits. Resources quickly went into the steel mills. Scrap recyclers are now adjusting operating strategies with and are receiving material at gradually increasing lower prices. The market is filled with caution.

This report has been prepared by TopRecycle, a market information company found on the Web at www.TopRecycle.com.