Average scrap prices in the Chinese domestic market have edged up compared to the prices recorded on September 18 amid better sentiments and expected restocking, which may bolster prices more.
Average domestic HMS scrap prices in China are at RMB 2,151/mt ex-warehouse, increasing by RMB 13/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 |
2,190 |
310.6 |
0 |
1.6 |
Liupanshui,Guizhou |
2,090 |
296.4 |
100 |
15.6 |
||
Nanchang,Jiangxi |
2,040 |
289.3 |
-20 |
-1.4 |
||
Handan,Hebei |
2,160 |
306.3 |
-20 |
-1.3 |
||
Anyang,Henan |
2,110 |
299.2 |
20 |
4.3 |
||
Zhangjiagang,Jiangsu |
2,245 |
318.4 |
20 |
4.4 |
||
Jinan,Shandong |
2,225 |
315.6 |
-10 |
0.2 |
||
Average |
2,151 |
305.1 |
13 |
3.4 |
||
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 amid rebounding ferrous metal futures prices. Currently, steelmakers’ inventories of scrap are at relatively low levels, which may stimulate stock replenishment ahead of the long National Day holiday (October 1-7), which would bolster scrap prices firmly. Furthermore, on September 24, the People’s Bank of China announced that the reserve requirement ratio (RRR) for Chinese banks will be cut by 0.5 percentage points in the near future, which will exert a positive impact on the scrap market. It is thought that scrap prices in the Chinese market will move up in the coming period.
The tradable level for ex-Japan HS scrap in China has been at $310-315/mt CFR, versus $310/mt CFR last week. However, the gap with offers still exists, with sellers’ official price ideas at $350/mt CFR and higher. Some lower levels at $330/mt CFR heard last week have not been heard for HS scrap this week.
$1 = RMB 7.0202