During the past week, scrap prices in the Chinese domestic market have fluctuated within a limited range amid the approach of the Chinese New Year holiday (January 21-27). With production outputs likely to continue to decrease, downstream users have continued to secure raw materials, mostly to meet only their urgent needs. Furthermore, due to higher scrap inventories most Chinese steelmakers have been under no pressure to enter the market. According to sources, lately aggregate steel scrap inventories at the major Chinese steel plants have reached 2.3 million mt, the highest level since May 2022.
Average domestic HMS scrap prices in China are at RMB 2,763/mt ex-warehouse, edging down by RMB 3/mt on average compared to January 11, 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 |
2,750 |
409.1 |
0 |
2.4 |
Liupanshui,Guizhou |
2,680 |
398.7 |
0 |
2.3 |
||
Nanchang,Jiangxi |
2,760 |
410.6 |
-20 |
-0.6 |
||
Handan,Hebei |
2,750 |
409.1 |
0 |
2.4 |
||
Anyang,Henan |
2,780 |
413.6 |
0 |
2.4 |
||
Zhangjiagang,Jiangsu |
2,840 |
422.5 |
0 |
2.4 |
||
Jinan,Shandong |
2,780 |
413.6 |
0 |
2.4 |
||
Average |
2,763 |
411.0 |
-3 |
1.9 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
With the workable prices for import scrap in China having settled at $410/mt CFR at the highest, ex-Japan offers for HS scrap at $430-440/mt CFR, up $20-25/mt over the past week, have remained out of the range of interest of Chinese steelmakers. Besides, some Japanese scrap suppliers are said to have started testing the waters with offers at $460/mt CFR China, following the successful closure of the Kanto tender.
$1 = RMB 6.7602