Average scrap prices in the Chinese domestic market have moved down compared to the prices recorded on July 29.
Average domestic HMS scrap prices in China are at RMB 2,107/mt ($310.4/mt) ex-warehouse, indicating a drop of RMB 18/mt on average compared to July 29, according to SteelOrbis' information.
Average scrap prices in China's main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS
|
> 6 mm
|
Tianjin | 2,185 | 321.8 | 0 | 0.0 |
| Liupanshui,Guizhou | 2,005 | 295.3 | -20 | -2.9 | ||
| Nanchang,Jiangxi | 2,090 | 307.9 | 0 | 0.0 | ||
| Handan,Hebei | 2,150 | 316.7 | -25 | -3.6 | ||
| Anyang,Henan | 2,130 | 313.7 | -45 | -6.6 | ||
| Zhangjiagang,Jiangsu | 2,110 | 310.8 | -20 | -2.9 | ||
| Jinan,Shandong | 2,080 | 306.4 | -15 | -2.2 | ||
| Average | 2,107 | 310.4 | -18 | -2.6 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, average scrap prices in the Chinese domestic market have moved on a downward trend amid the prevailing cautious sentiments among market players. The widespread high temperatures have exerted a negative impact on scrap processing and transportation, bolstering prices to a certain degree. Meanwhile, the approaching Typhoon Dolphin will continue to reduce the arrivals of scrap in the market, which will offer some support for prices.
However, demand for finished steel has been slack, negatively affecting the scrap market. Currently, inventory of scrap has dropped to a relatively low level, which may provide support for prices. Continuous decreases in ferrous metal futures prices have weakened the scrap market. It is expected that scrap prices in the Chinese domestic market will edge down slightly in the coming week.
$1 = RMB 6.7889
