Average scrap prices in the Chinese domestic market have edged down compared to the prices recorded on July 17 due to weak demand.
Average domestic HMS scrap prices in China are at RMB 2,479/mt ex-warehouse, decreasing by RMB 34/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 |
2,545 |
356.8 |
-40 |
-5.6 |
Liupanshui,Guizhou |
2,430 |
340.7 |
-20 |
-2.8 |
||
Nanchang,Jiangxi |
2,410 |
337.9 |
-30 |
-4.2 |
||
Handan,Hebei |
2,565 |
359.6 |
-10 |
-1.4 |
||
Anyang,Henan |
2,420 |
339.3 |
-50 |
-7.0 |
||
Zhangjiagang,Jiangsu |
2,490 |
349.1 |
-45 |
-6.3 |
||
Jinan,Shandong |
2,490 |
349.1 |
-40 |
-5.6 |
||
Average |
2,479 |
347.5 |
-34 |
-4.7 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
On July 19 and July 24, major Chinese steelmaker Shagang Group cut its scrap purchase prices by RMB 50/mt ($7/mt) twice in a row, reflecting the cautious sentiments among market players. The hot weather and heavy rainfalls in southern China have negatively affected the demand from downstream users, with the adverse weather conditions reducing the delivery of scrap to the market and bolstering prices to a certain degree. It is thought that scrap prices in the Chinese domestic market will likely move down further in the week ahead.
The latest tradable price for ex-Japan HS scrap has been at $345/mt CFR, versus $350-355/mt CFR last week, but offer prices are still higher than that – at $365/mt CFR or so.
$1 = RMB 7.1358