Average scrap prices in the Chinese domestic market have indicated a small negative correction compared to the prices recorded on June 19.
Average domestic HMS scrap prices in China are at RMB 2,505/mt ex-warehouse, decreasing by RMB 9/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 |
2,605 |
365.7 |
-10 |
-1.8 |
Liupanshui,Guizhou |
2,450 |
344.0 |
-20 |
-3.2 |
||
Nanchang,Jiangxi |
2,430 |
341.1 |
-20 |
-3.2 |
||
Handan,Hebei |
2,565 |
360.1 |
-30 |
-4.6 |
||
Anyang,Henan |
2,440 |
342.6 |
-30 |
-4.6 |
||
Zhangjiagang,Jiangsu |
2,545 |
357.3 |
20 |
2.4 |
||
Jinan,Shandong |
2,500 |
351.0 |
25 |
3.1 |
||
Average |
2,505 |
351.7 |
-9 |
-1.7 |
||
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 moved down amid the decreasing trend in finished steel prices. However, inventory of scrap on the steelmakers’ side has been at relatively low levels, bolstering prices to a certain degree. Since steelmakers’ profitability has not been so good, some of them have reduced scrap utilization rates, which may weaken the support for scrap prices. Finished steel prices may edge down in the coming week amid the hot weather and heavy rainfalls, which will exert a negative impact on the scrap market. It is expected that scrap prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
The latest tradable ex-Japan HS scrap prices have remained at $345-350/mt CFR.
$1 = RMB 7.1248