After a period of fluctuations, as the impact of tariffs gradually came to an end, on May 17, 2025, the scrap steel market witnessed some subtle changes, with the overall market trend 

showing a wait-and-see attitude of halting gains.

This week, the rebar market generally maintained a strong performance. Due to the easing of tariffs, it was beneficial for exports and the inventory clearance of finished products. 

The rebar market was expected to strengthen and rose for several consecutive days, driving up the prices of steel billets and other products slightly. The profits of steel enterprises 

were somewhat restored, and the scrap steel market saw an overall increase of 30% to 50%.

From the perspective of market supply and demand, the previous increase in scrap steel prices has, to a certain extent, stimulated the market's processing enthusiasm. However, 

due to tight resources and the bullish sentiment of some merchants, the arrival in most regions is still less than the daily consumption.

Moreover, in terms of finished products: The demand from downstream steel-consuming enterprises has not been able to maintain a strong growth trend continuously. 

The construction industry has experienced fluctuations in its operating rate due to seasonal factors or project progress, and the demand for steel is no longer as vigorous as it was 

in the early stage. Despite the adjustment of its own development pace, the manufacturing industry has not seen a significant increase in the demand for steel products. As a result, 

the profits of steel enterprises have not yet returned to the ideal level, and a considerable number of electric furnace factories are still in a stage of slight losses.

Secondly, as the positive news has been exhausted and the market returns to the fundamentals, due to concerns over whether the relevant authorities will continue to introduce market 

stimulus policies after the easing of the tariff war, the expectations for the future market are actually weakening. Coupled with the decline in rebar futures, the off-season for finished products, 

and losses of steel enterprises and other factors, some merchants choose to buy at higher prices, and steel enterprises have begun to passively replenish their inventories. Some steel mills have 

taken the opportunity to lower prices. There may also be a new round of decline cycle, which makes the mentality of scrap steel practitioners more cautious. All parties are closely monitoring 

the subsequent policies and the trend of finished product profits, rather than focusing on external influences.

For the upcoming trend, there is no need to panic too much for the time being.

Firstly, the new national standard for "Recycled Steel Raw Materials" is about to come into effect on June 1st, which is of positive significance for the future standardization of scrap steel and 

the import and export of scrap steel. Secondly, the impact of production restrictions has not yet ended. It will still have a promoting effect on steel prices in the future. Under the offset of the 

off-season, it is conducive to the stability of finished product prices.

To sum up, the short-term scrap steel market has stopped rising and entered a stage of volatile adjustment. Supported by tight scrap steel resources and temporarily stable steel prices, there is 

a risk of a sharp decline in scrap steel prices. In the second half of May, it will mostly operate weakly along with the market situation and the profits of steel mills in a narrow range. There is still a 

warming trend in the future. Dear friends, please maintain a fast buying and selling pace and look forward to the subsequent rebound of scrap steel.