Average scrap prices in the Chinese domestic market have moved down compared to the previous week after Shagang Group cut its prices.
Average domestic HMS scrap prices in China are at RMB 2,568/mt ex-warehouse, decreasing by RMB 36/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 |
> 6 mm |
Tianjin |
2,620 |
365.0 |
-25 |
-3.4 |
|
Liupanshui,Guizhou |
2,530 |
352.4 |
-25 |
-3.4 |
||
|
Nanchang,Jiangxi |
2,530 |
352.4 |
-45 |
-6.2 |
||
|
Handan,Hebei |
2,620 |
365.0 |
-40 |
-5.5 |
||
|
Anyang,Henan |
2,470 |
344.1 |
-75 |
-10.4 |
||
|
Zhangjiagang,Jiangsu |
2,605 |
362.9 |
-25 |
-3.4 |
||
|
Jinan,Shandong |
2,600 |
362.2 |
-20 |
-2.7 |
||
|
Average |
2,568 |
357.7 |
-36 |
-5.0 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, cautious sentiments have prevailed among market players, exerting a negative impact on scrap prices. Meanwhile, inventory of scrap has been at sufficient levels, curbing the demand for scrap and resulting in weak buying activity. Sales activities of finished steel have not been very good, reducing steelmakers’ profitability and so steelmakers may decrease their purchase prices for scrap.
On October 22, Jiangsu-based Shagang Group, China’s largest private steelmaker, cut its scrap purchase price by another RMB 30/mt ($4.2/mt), negatively affecting prices in the spot market.
It is expected that scrap prices in the Chinese domestic market will edge down slightly in the coming week.
The latest ex-Japan HS scrap tradable price stands at $370/mt CFR, versus $375/mt CFR last week.
$1 = RMB 7.1785