Average scrap prices in the Chinese domestic market have moved on a downtrend in the past week, but the pace of the decline has been slower than in the previous week owing to some improvement seen in futures and spot prices in the local steel market in China early this week.
Average domestic HMS scrap prices in China are at RMB 2,604/mt ex-warehouse, decreasing by RMB 23/mt on average compared to the previous week, when they lost RMB 32/mt, 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 |
2,645 |
368.4 |
-15 |
-2.2 |
|
Liupanshui,Guizhou |
2,555 |
355.8 |
0 |
-0.1 |
||
|
Nanchang,Jiangxi |
2,575 |
358.6 |
-75 |
-10.5 |
||
|
Handan,Hebei |
2,660 |
370.5 |
0 |
-0.1 |
||
|
Anyang,Henan |
2,545 |
354.5 |
-50 |
-7.1 |
||
|
Zhangjiagang,Jiangsu |
2,630 |
366.3 |
-20 |
-2.9 |
||
|
Jinan,Shandong |
2,620 |
364.9 |
0 |
-0.1 |
||
|
Average |
2,604 |
362.7 |
-23 |
-3.3 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have mostly declined amid the relatively high level of scrap supply arriving at steelmakers. Currently, scrap prices are lower than pig iron costs, resulting in firm demand for scrap. On October 14, Jiangsu-based Shagang Group, China’s largest private steelmaker, cut its scrap purchase price by RMB 30/mt ($4.2/mt), exerting a negative impact on prices in the spot market. Finished steel prices have moved on a stable trend, easing the bearish sentiments among market players to a certain degree. It is thought that scrap prices in the Chinese domestic market will likely edge up slightly in the coming week.
The latest ex-Japan HS scrap tradable price has been at $375/mt CFR, versus $375-380/mt CFR last week, while most offers are not below $395/mt CFR.
$1 = RMB 7.1779