Average scrap prices in the Chinese domestic market have indicated big declines in the past week, compared to the week before the Labor Day holiday. Import offers have also been reported at lower levels, but demand has not improved as buyers have continued to cut bids.
Average domestic HMS scrap prices in China are at RMB 2,517/mt ex-warehouse, moving down by RMB 90/mt on average compared to April 26, 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 |
> 6 mm |
Tianjin |
2,565 |
370.3 |
-85 |
-14.6 |
|
Liupanshui, Guizhou |
2,520 |
363.8 |
-120 |
-19.6 |
||
|
Nanchang, Jiangxi |
2,490 |
359.5 |
-85 |
-14.5 |
||
|
Handan, Hebei |
2,565 |
370.3 |
-85 |
-14.6 |
||
|
Anyang, Henan |
2,530 |
365.3 |
-65 |
-11.6 |
||
|
Zhangjiagang, Jiangsu |
2,530 |
365.3 |
-110 |
-18.2 |
||
|
Jinan, Shandong |
2,420 |
349.4 |
-80 |
-13.7 |
||
|
Average |
2,517 |
363.4 |
-90 |
-15.2 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given period, scrap prices in the Chinese domestic market have moved down sharply as steelmakers have been seeking to reduce their production costs. The demand for scrap has been slack amid the prevailing bearish sentiments among market players. However, ferrous metal futures prices have indicated a rebounding trend, which has bolstered scrap prices to some extent. As for the coming week, the increasing trend of finished steel prices may provide some support for scrap prices.
The latest ex-Japan HS scrap tradable offers to China have been assessed at JPY 50,500/mt ($374/mt) CFR, moving down by JPY 3,500/mt ($26/mt) compared to April 26. However, the market is waiting for the new bid from Hyundai Steel tomorrow, May 11, which may be better than the prices China can pay. Some Chinese customers have been bidding at $355-375/mt CFR for HS scrap.
$1 = RMB 6.9237