Average scrap prices in the Chinese domestic market have continued their downtrend as demand has been slow, while the import scrap market has remained halted with low price ideas from buyers.
Average domestic HMS scrap prices in China are at RMB 2,495/mt ex-warehouse, moving down by RMB 22/mt on average compared to May 10, 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 |
2,565 |
369.0 |
0 |
-1.3 |
|
Liupanshui,Guizhou |
2,480 |
356.8 |
-40 |
-7.1 |
||
|
Nanchang,Jiangxi |
2,490 |
358.2 |
0 |
-1.3 |
||
|
Handan,Hebei |
2,545 |
366.1 |
-20 |
-4.2 |
||
|
Anyang,Henan |
2,500 |
359.7 |
-30 |
-5.6 |
||
|
Zhangjiagang,Jiangsu |
2,470 |
355.3 |
-60 |
-9.9 |
||
|
Jinan,Shandong |
2,415 |
347.4 |
-5 |
-2.0 |
||
|
Average |
2,495 |
358.9 |
-22 |
-4.5 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinse domestic market edged up first while moving down later. Inventory of scrap has seen a decreasing trend as market players have been cautious in building up stocks, especially as major Chinese steelmaker Shagang has been cutting its scrap purchase prices continuously. Meanwhile, the production of scrap has been at relatively low levels, decreasing by 50-60 percent year on year. However, since coking coal prices are thought to be at bottom levels, this will provide some support for scrap prices. It is expected that scrap prices in the Chinese domestic market will move sideways in the coming week.
The latest tradable ex-Japan HS scrap prices have been heard at JPY 50,500/mt ($369/mt) CFR, moving sideways compared to May 10. However, taking into account that today a leading South Korean steelmaker has been bidding at around JPY 52,300/mt ($381/mt) CFR, Japanese suppliers have fully retreated from offering to China.
$1 = RMB 6.9748