Average scrap prices in the Chinese domestic market have moved down compared to the prices recorded on October 16 due to sliding futures prices and weak demand from steel mills.
Average domestic HMS scrap prices in China are at RMB 2,301/mt ex-warehouse, decreasing by RMB 64/mt on average compared to 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 |
2,340 |
328.6 |
-110 |
-17.3 |
Liupanshui,Guizhou |
2,245 |
315.2 |
-45 |
-8.1 |
||
Nanchang,Jiangxi |
2,215 |
311.0 |
-85 |
-13.7 |
||
Handan,Hebei |
2,300 |
322.9 |
-100 |
-15.9 |
||
Anyang,Henan |
2,290 |
321.5 |
-40 |
-7.4 |
||
Zhangjiagang,Jiangsu |
2,310 |
324.3 |
-50 |
-8.8 |
||
Jinan,Shandong |
2,410 |
338.4 |
-20 |
-4.7 |
||
Average |
2,301 |
323.1 |
-64 |
-10.9 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have moved down amid the slack demand from downstream users. On October 18, major Chinese steelmaker Shagang Group cut its scrap purchase prices by RMB 50/mt ($7/mt), exerting a negative impact on the scrap market. Lately, ferrous metal futures prices have indicated downward corrections, weakening the support for scrap prices. Arrivals of scrap at steelmakers have mostly decreased, which will bolster prices. At the same time, China has announced the reduction of the one-year loan prime rate (LPR) to 3.1 percent, while cutting the LPR for five years or more to 3.6 percent, both down 25 basis points from the previous month, positively affecting market sentiments. It is thought that scrap prices in the Chinese domestic market will likely move sideways in the coming week.
The latest ex-Japan HS scrap tradable prices have been at $320-330/mt CFR, down $10/mt over the past week.
$1 = RMB 7.1245