Average scrap prices in the Chinese domestic market have indicated slight rises compared to the previous week amid tightening supply due to adverse weather conditions.
Average domestic HMS scrap prices in China are at RMB 2,646/mt ex-warehouse, increasing by RMB 12/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 |
> 6 mm |
Tianjin |
2,710 |
381.8 |
0 |
1.0 |
Liupanshui,Guizhou |
2,640 |
371.9 |
0 |
1.0 |
||
Nanchang,Jiangxi |
2,630 |
370.5 |
0 |
1.0 |
||
Handan,Hebei |
2,700 |
380.4 |
30 |
5.2 |
||
Anyang,Henan |
2,595 |
365.6 |
20 |
3.8 |
||
Zhangjiagang,Jiangsu |
2,670 |
376.2 |
30 |
5.2 |
||
Jinan,Shandong |
2,580 |
363.5 |
5 |
1.7 |
||
Average |
2,646 |
372.8 |
12 |
2.7 |
||
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 edged up slightly amid Chinese major steelmaker Shagang Group raising its scrap prices by RMB 50/mt ($7/mt). The large-scale snowy and rainy weather in China exerted a negative impact on the demand for steel, which exerted a negative impact on the scrap market. But at the same time, the supply of scrap has tightened against this background, bolstering scrap prices to a certain degree. It is expected that scrap prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
The latest tradable level for ex-Japan HS has further inched up from $375-380/mt CFR to $380/mt CFR, but offers have been still above $405-410/mt CFR, making the import market halted.
$1 = RMB 7.0966