Average scrap prices in the Chinese domestic market have moved up compared to the prices recorded on September 11 amid positive futures prices and lower supply due to weather conditions.
Average domestic HMS scrap prices in China are at RMB 2,139/mt ex-warehouse, increasing by RMB 41/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 |
309.0 |
40 |
6.8 |
Liupanshui,Guizhou |
1,990 |
280.8 |
45 |
7.4 |
||
Nanchang,Jiangxi |
2,060 |
290.7 |
20 |
3.9 |
||
Handan,Hebei |
2,180 |
307.6 |
20 |
4.0 |
||
Anyang,Henan |
2,090 |
294.9 |
50 |
8.1 |
||
Zhangjiagang,Jiangsu |
2,225 |
314.0 |
35 |
6.1 |
||
Jinan,Shandong |
2,235 |
315.4 |
75 |
11.7 |
||
Average |
2,139 |
301.8 |
41 |
6.9 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have moved on an uptrend amid the halting of supplies due to the negative impact of typhoon Bebinca, which hit Shanghai severely on September 16. However, transaction activities for finished steel have also slackened, weakening the support for scrap prices. Since the long National Day holiday (October 1-7) is approaching, market players expect that downstream users may build up stocks during the rest of the month, which will positively affect scrap prices in the near future. It is though that scrap prices in the Chinese domestic market will likely edge up in the coming week.
The latest ex-Japan HS scrap offer prices have been heard at JPY 46,600/mt ($330/mt) CFR, decreasing by JPY 1,500/mt compared to September 11, while the dollar equivalent is $6.5/mt lower than last week. Buyers’ price ideas at the same time have improved by $5-10/mt over the past week to $310/mt CFR, but still not high enough for suppliers to agree to sell.
$1 = RMB 7.087