Average scrap prices in the Chinese domestic market have indicated an uptrend compared to the previous week amid increasing ferrous metal futures prices and stronger raw material prices.
Average domestic HMS scrap prices in China are at RMB 2,633/mt ex-warehouse, increasing by RMB 29/mt on average compared to the 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 |
2,760 |
386.5 |
+40 |
+5.8 |
|
Liupanshui, Guizhou |
2,500 |
350.1 |
0 |
+0.2 |
||
|
Nanchang, Jiangxi |
2,565 |
359.2 |
+10 |
+1.6 |
||
|
Handan, Hebei |
2,710 |
379.5 |
+30 |
+4.4 |
||
|
Anyang, Henan |
2,660 |
372.5 |
+55 |
+7.9 |
||
|
Zhangjiagang, Jiangsu |
2,660 |
372.5 |
+35 |
+5.1 |
||
|
Jinan, Shandong |
2,575 |
360.6 |
+30 |
+4.4 |
||
|
Average |
2,633 |
368.7 |
+29 |
+4.2 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices have followed an upward trend amid the relatively low supply. At the same time, ferrous metal futures prices have indicated a rebounding trend, providing support for scrap prices. Moreover, prices of other raw materials, including coke and import iron ore, have moved up, bolstering scrap prices. In addition, the Chinese government has issued policies to boost local demand, including stimulus policies to boost the consumption of vehicles and home appliances, and rebuilding villages inside megacities, which will positively affect sentiment in the scrap market. It is thought that scrap prices in the Chinese domestic market may continue the uptrend in the coming week.
The latest tradable level for ex-Japan HS scrap in China has changed only slightly from $380/mt CFR last week to $380-385/mt CFR. The lowest offers are at $400-410/mt CFR.
$1 = RMB 7.1406