Average scrap prices in the Chinese domestic market have moved down compared to the prices recorded on July 24 due to weak demand and falling steel prices.
Average domestic HMS scrap prices in China are at RMB 2,393/mt ex-warehouse, decreasing by RMB 86/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 |
2,470 |
346.1 |
-75 |
-10.7 |
Liupanshui,Guizhou |
2,320 |
325.1 |
-110 |
-15.6 |
||
Nanchang,Jiangxi |
2,330 |
326.5 |
-80 |
-11.4 |
||
Handan,Hebei |
2,470 |
346.1 |
-95 |
-13.5 |
||
Anyang,Henan |
2,320 |
325.1 |
-100 |
-14.2 |
||
Zhangjiagang,Jiangsu |
2,420 |
339.1 |
-70 |
-10.0 |
||
Jinan,Shandong |
2,420 |
339.1 |
-70 |
-10.0 |
||
Average |
2,393 |
335.3 |
-86 |
-12.2 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
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On July 26, major Chinese steelmaker Shagang Group cut its scrap purchase prices by another RMB 50/mt ($7/mt), reflecting the continuation of the prevailing bearish sentiments among market players. The shift in national standards for rebar and wire rod has negatively affected steel prices and market sentiments, weakening the support for scrap prices. The hot weather in China has continued, which will hinder the circulation of scrap supplies in the market, while steelmakers have mostly been incurring losses. It is thought that scrap prices in the Chinese market will soften further in the coming week.
The latest tradable price for ex-Japan HS scrap has lost $10/mt over the past week to $335/mt CFR, but sellers have been mostly inactive, with indicative offers at $360-370/mt CFR.
$1 = RMB 7.1346