Average scrap prices in the Chinese domestic market have moved up significantly compared to the prices recorded on September 25, following the rebound of steel prices before the holidays and expectations of the better market support from the demand side in October.
Average domestic HMS scrap prices in China are at RMB 2,359/mt ex-warehouse, increasing by RMB 208/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 |
2 Weeks change |
2 Weeks change |
HMS scrap |
> 6 mm |
Tianjin |
2,470 |
349.3 |
+280 |
+38.7 |
Liupanshui, Guizhou |
2,225 |
314.7 |
+135 |
+18.3 |
||
Nanchang, Jiangxi |
2,280 |
322.4 |
+240 |
+33.1 |
||
Handan, Hebei |
2,440 |
345.1 |
+280 |
+38.7 |
||
Anyang, Henan |
2,330 |
329.5 |
+220 |
+30.3 |
||
Zhangjiagang, Jiangsu |
2,340 |
330.9 |
+95 |
+12.5 |
||
Jinan, Shandong |
2,430 |
343.7 |
+205 |
+28.1 |
||
Average |
2,359 |
333.7 |
+208 |
+28.5 |
||
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 up sharply amid China’s issuance of several stimulus policies, which aimed to boost the economy. Meanwhile, major Chinese steelmaker Shagang Group announced a RMB 150/mt ($21/mt) increase in its scrap purchase price on October 9, providing some support for market sentiments. Some steelmakers’ capacity utilization rates have increased due to improved profitability, resulting in increasing demand for scrap. After the long National Day holiday, some steelmakers still hold a wait-and-see stance as regards the future prospects for the steel market amid the turbulence in the financial market. It is expected that scrap prices in the Chinese market will edge up slightly in the coming week.
The tradable level for ex-Japan HS scrap in China has increased to $330-340/mt CFR, versus $310-315/mt CFR on September 25.
$1 = RMB 7.0568