Average scrap prices in the Chinese domestic market have moved down compared to the prices recorded on September 4 as demand has remained weak, though the market mood has improved over the past few days amid better steel futures prices.
Average domestic HMS scrap prices in China are at RMB 2,098/mt ex-warehouse, decreasing by RMB 70/mt on average compared to the 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 |
2,150 |
302.2 |
-140 |
-19.8 |
Liupanshui, Guizhou |
1,945 |
273.4 |
-55 |
-7.8 |
||
Nanchang, Jiangxi |
2,040 |
286.8 |
-30 |
-4.3 |
||
Handan, Hebei |
2,160 |
303.6 |
-95 |
-13.5 |
||
Anyang, Henan |
2,040 |
286.8 |
-70 |
-10.0 |
||
Zhangjiagang, Jiangsu |
2,190 |
307.8 |
-45 |
-6.5 |
||
Jinan, Shandong |
2,160 |
303.6 |
-55 |
-7.9 |
||
Average |
2,098 |
294.9 |
-70 |
-10.0 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have declined as demand for scrap has remained slack since, even though some electric furnaces have been resuming production, overall scrap consumption is still at a low level. Supply of scrap has been relatively stable, so further movements of prices will depend on the steel market. If prices of steel keep increasing gradually, this may halt the downward trend in the scrap segment.
The latest ex-Japan HS scrap offer prices have been heard at JPY 48,100/mt ($336.5/mt) CFR, decreasing by JPY 1,000/mt compared to September 4. However, the dollar equivalent is almost stable from last week due to the fluctuation of the exchange rate. At the same time, buyers’ price ideas for imported scrap have decreased to $300-305/mt CFR, down from $305-310/mt CFR last week.
$1 = RMB 7.1182