Average scrap prices in the Chinese domestic market have edged up compared to the prices recorded on August 28 amid some reduction in supply. But since demand has remained reduced and sentiments have worsened after the declines seen in futures prices, the situation in the scrap market is uncertain.
Average domestic HMS scrap prices in China are at RMB 2,168/mt ex-warehouse, increasing by RMB 25/mt on average compared to previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
Product name |
Specification |
Origin |
Price |
Price |
Weekly change |
Weekly change |
HMS scrap |
> 6 mm |
Tianjin |
2,290 |
322.0 |
25 |
4.1 |
Liupanshui,Guizhou |
2,000 |
281.3 |
0 |
0.6 |
||
Nanchang,Jiangxi |
2,070 |
291.1 |
40 |
6.2 |
||
Handan,Hebei |
2,255 |
317.1 |
30 |
4.8 |
||
Anyang,Henan |
2,110 |
296.7 |
20 |
3.4 |
||
Zhangjiagang,Jiangsu |
2,235 |
314.3 |
35 |
5.5 |
||
Jinan,Shandong |
2,215 |
311.5 |
25 |
4.1 |
||
Average |
2,168 |
304.9 |
25 |
4.1 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have edged up slightly amid decreasing inventories and declining supplies arriving in the market. However, sources reported that since yesterday there has been a normalization of scrap supply. Also, demand for scrap has remained slack some electric furnaces have halted production. Since steel futures prices have been posting sharp declines over the past three days, market sources’ near-term outlook for scrap has become more pessimistic.
The latest ex-Japan HS scrap offer prices have been heard at JPY 49,100/mt ($336/mt) CFR, decreasing by JPY 2,000/mt compared to August 28, while the dollar-based price has lost $11/mt. At the same time, buyers’ price ideas for imported scrap have mainly been at $305-310/mt CFR, still much lower than offers.
$1 = RMB 7.1148