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Heavy scrap traded at 2,240-2,320 yuan ($363-376) per tonne including tax, on a delivered basis to eastern Chinese steel mills on Friday June 5,where prices have held since May 23.

The spot iron ore market was largely stable this week – Metal Bulletin’s 62% Fe iron ore index stood at $93.79 per tonne cfr China on Thursday June 5, down from $98.29 on May 23, but up from $92.58 per tonne at the start of the week.

"There’s limited room for scrap prices to fall further from current levels, but there’s little chance for prices to rebound either, given the context of the steel and iron ore markets," a trader in Shanghai said.

“The domestic scrap market is generally weak this year, so the coming harvest season won’t affect the scrap market as much as it usually does,” an analyst in Beijing said.

Scrap supplies traditionally tighten in June as recyclers go back to work on the farms.