Average scrap prices in the Chinese domestic market have fluctuated within a limited range compared to the prices recorded on July 10. Weak steel demand and the strategy to keep inventories low have prevented scrap prices from recording any rises. Moreover, activity in the import scrap market has been at a standstill with a gap of about $20/mt between offers and bids.
Average domestic HMS scrap prices in China are at RMB 2,512/mt ex-warehouse, decreasing by RMB 1/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 |
2,585 |
362.4 |
10 |
1.3 |
Liupanshui,Guizhou |
2,450 |
343.5 |
0 |
-0.1 |
||
Nanchang,Jiangxi |
2,440 |
342.1 |
0 |
-0.1 |
||
Handan,Hebei |
2,575 |
361.0 |
0 |
-0.1 |
||
Anyang,Henan |
2,470 |
346.3 |
20 |
2.7 |
||
Zhangjiagang,Jiangsu |
2,535 |
355.4 |
-40 |
-5.7 |
||
Jinan,Shandong |
2,530 |
354.7 |
0 |
-0.1 |
||
Average |
2,512 |
352.2 |
-1 |
-0.3 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
In the past week, scrap prices edged up first while declining later in the week as some major steelmakers cut their scrap purchase prices amid the increasing arrivals of scrap supplies. Ferrous metal futures prices have decreased, exerting a negative impact on scrap prices. Players in the scrap market took action to reduce their inventory levels. Cautious sentiments have prevailed among market participants and so they prefer to keep relatively low inventory levels of scrap. It is thought that scrap prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
The tradable level for ex-Japan HS scrap has been heard at $350-355/mt CFR, stable over the past week, but offers have increased to $370-375/mt CFR as Japanese sellers have managed to sell to alternative destinations. In particular, South Korea’s POSCO bid at $377/mt CFR for ex-Japan HS last week.
$1 = RMB 7.1318