Last week, China’s scrap market kept strong, and most steel mills consumed their inventory mainly instead production.

As of August 11, the scrap inventory of China’s 61 steel mills was 1.61 million, dropping by 5.4% week on week.

There were two different viewpoints regarding the steel market during the peak season in September and October. one point indicated that although rebar production was lower than the volume last year, the scarp demand would still be at a decent level. The other point stated that the economic performance would not be good in the fourth quarter, and rebar demand would still be low, which would curb steel mills’ profits.