Average scrap prices in the Chinese domestic market have edged up compared to the previous week amid the rebounding trend of ferrous metal futures prices and the rising trends of import iron ore and coke prices.
Average domestic HMS scrap prices in China are at RMB 2,604/mt ex-warehouse, moving up by RMB 27/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 |
2,720 |
380.7 |
80 |
13.5 |
|
Liupanshui,Guizhou |
2,500 |
349.9 |
30 |
6.3 |
||
|
Nanchang,Jiangxi |
2,555 |
357.6 |
0 |
2.2 |
||
|
Handan,Hebei |
2,680 |
375.1 |
60 |
10.6 |
||
|
Anyang,Henan |
2,605 |
364.6 |
20 |
5.0 |
||
|
Zhangjiagang,Jiangsu |
2,625 |
367.4 |
0 |
2.2 |
||
|
Jinan,Shandong |
2,545 |
356.2 |
0 |
2.2 |
||
|
Average |
2,604 |
364.5 |
27 |
6.0 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices have moved on an uptrend amid increasing ferrous metal futures prices. Meanwhile, import iron ore prices have moved up and coke prices have also indicated rises, by RMB 60/mt this week, exerting a positive impact on the scrap market. The hot summer weather has negatively affected scrap production, while activities on construction sites have decreased as well, which may result in a limited rise in scrap prices in the near future. It is expected that scrap prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
The latest tradable level for ex-Japan HS scrap in China has remained stable from last week, at $380/mt CFR, which is unattractive for suppliers, who managed to sell at $400-405/mt CFR for the same grade to South Korean mills late last week.
$1 = RMB 7.1486