Average scrap prices in the Chinese domestic market have moved up compared to the previous week amid the relatively low levels of scrap production and low inventories.
Average domestic HMS scrap prices in China are at RMB 2,609/mt ex-warehouse, moving up by RMB 30/mt on average compared to June 27, 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 |
2,680 |
372.0 |
40 |
5.8 |
|
Liupanshui,Guizhou |
2,450 |
340.0 |
0 |
0.2 |
||
|
Nanchang,Jiangxi |
2,555 |
354.6 |
0 |
0.2 |
||
|
Handan,Hebei |
2,650 |
367.8 |
25 |
3.7 |
||
|
Anyang,Henan |
2,630 |
365.0 |
75 |
10.7 |
||
|
Zhangjiagang,Jiangsu |
2,670 |
370.6 |
15 |
2.3 |
||
|
Jinan,Shandong |
2,630 |
365.0 |
55 |
7.9 |
||
|
Average |
2,609 |
362.1 |
30 |
4.4 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, rebar futures prices have moved on a rebounding trend, exerting a positive impact on steelmakers’ profitability, which has bolstered scrap prices to some extent. Meanwhile, supply of scrap has been at relatively low levels, resulting in low inventory levels, which has provided some support for prices. However, since the summer is the traditional offseason for steel, which will negatively affect the scrap market, it is thought that scrap prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
The latest ex-Japan HS scrap tradable level has been heard at $385/mt CFR, up by $5/mt from a week ago, but import trading has remained at a standstill, with all offers mainly at $395-405/mt CFR.
$1 = RMB 7.2046