SteelOrbis Shanghai
Chinese heavy melting
scrap market moved stable on the whole with flat
trading performances.
On November 29, heavy
scrap prices in Zhangjiagang, southern
China were constant at RMB 2,000/mt ($255/mt), while those in Alashankou, northern
China were also steady at RMB 1,810/mt ($230).
Due to the low inventory and transportation problem, some steel mills such as Yonggang, Wuxi Xuefeng, and Changzhou Zhongtian hiked their purchase prices by RMB 30/mt ($) in week 47. Recently,
Shagang's purchase price of heavy
scrap grade 1 is at RMB 2,070/mt ($265), and that of heavy
scrap grade 2 is at RMB 2,040/mt ($261).
The mainstream prices of heavy
scrap in southwestern and northwestern regions are around RMB 1,900-2,000/mt ($243-255), with bearish
trading performance.
In northern
China, since there is some transportation problems, the supply has been little. Therefore, prices sustained stability despite the sluggish commercial activity. At present, the heavy
scrap purchase price of Shougang is at RMB 2,100/mt ($268) and that of Tangshan Steel is at about RMB 1,850/mt ($236).
In recent days,
scrap prices increased in international market. Therefore, the costs of imported
scrap also followed the upward trend. Nevertheless, the rapid gain in RMB/USD exchange rate relieved the cost pressure by a certain extent.
For the future, influenced by the price increase of domestic
iron ore, steel mills are likely to raise the purchase quantity of heavy
scrap. Thus, the future market trend may differ in various regions.