In April, China witnessed a notable surge in scrap steel prices as demand for steel improved. This surge was supported by the upward trajectory of steel futures prices. Looking ahead to May, analysts predicted a continued rise in steel demand alongside firm prices for raw materials like iron ore and coking coal.

After China's Labor holiday, steel mills were expected to need to restock scrap steel, which would further support prices. However, China recently introduced policies for the recycling sector, which might cause some uncertainty regarding scrap prices.