Average scrap prices in the Chinese domestic market have moved down sharply compared to the prices recorded on August 14, following rapid declines in steel prices, falling futures prices and increasing steel production cuts by mills. However, as the mood has improved this week, further declines are doubtful.
Average domestic HMS scrap prices in China are at RMB 2,109/mt ex-warehouse, decreasing by RMB 171/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 |
2,200 |
308.4 |
-150 |
-20.3 |
Liupanshui,Guizhou |
2,000 |
280.4 |
-255 |
-35.1 |
||
Nanchang,Jiangxi |
2,010 |
281.8 |
-205 |
-28.1 |
||
Handan,Hebei |
2,160 |
302.8 |
-190 |
-25.9 |
||
Anyang,Henan |
2,030 |
284.6 |
-150 |
-20.4 |
||
Zhangjiagang,Jiangsu |
2,200 |
308.4 |
-80 |
-10.5 |
||
Jinan,Shandong |
2,160 |
302.8 |
-170 |
-23.1 |
||
Average |
2,109 |
295.6 |
-171 |
-23.4 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
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During the given week, scrap prices in the Chinese domestic market have seen significant decreases amid the continuous decreases in finished steel prices. Some recycling bases have halted their purchases of scrap, maintaining a wait-and-see stance instead. Bearish sentiments still prevail among market players, which may exert a negative impact on scrap prices. However, it is thought that scrap prices in the Chinese domestic market may fluctuate in a limited range as ferrous metal futures prices indicated sharp rises on August 21, while supply and demand have found some tentative equilibrium for now.
The latest ex-Japan HS scrap offer prices have been heard at JPY 51,600/mt ($350/mt) CFR, decreasing by JPY 500/mt compared to August 14, while the dollar price has lost $4/mt. Nevertheless, buyers think the decline is insufficient, considering $300-310/mt CFR to be workable levels, versus $320-325/mt CFR last week.
$1 = RMB 7.1307