Scrap prices in China have risen slightly in the past week in the northeastern region. Some steel mills have increased their scrap purchase prices as they seek to maintain their inventory levels.
Product name | Specification | Place of origin | Price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
HMS scrap | > 6 mm | Jiangsu | 3,080 | +50 | 458 | +7 |
Shandong | 2,900 | +50 | 431 | +7 |
Current mainstream quotations of heavy scrap in Jiangsu Province are at RMB 3,000-3,050/mt ($446-453/mt), while the purchase prices in this province for cut grade scrap stand at RMB 2,900-2,970/mt ($431-442/mt), both up RMB 50/mt ($7/mt) week on week. In Hebei Province, mainstream purchase prices of steel mills for heavy scrap are at RMB 2,900-2,970/mt ($431-442/mt), while market prices for heavy scrap in northeastern China are at RMB 2,900-3,050 /mt ($431-454/mt). In addition, scrap prices in Hubei Province are at RMB 2,950-3,000 /mt ($439-446/mt), up RMB 100/mt ($7/mt) week on week.
Over the past week, the Chinese scrap market has seen an overall increase of around RMB 50/mt ($7/mt). Due to the national policy on energy savings and emissions reductions, many steel mills reduced their production, causing domestic steel prices to rise strongly, by about RMB 300-400/mt ($45-60/mt). However, the increases have not been supported by end-side demand. Looking at the current scrap market, there appears to be limited room for increases in scrap prices and the market may follow a downtrend in the coming period.
Meanwhile, China's scrap import market has remained stable, with ex-US shredded scrap offered to China at $420/mt (CFR) and with quotations of ex-Japan H2 scrap offered to China at the level of $370-380/mt CFR, both unchanged week on week.