Average scrap prices in the Chinese domestic market have continued their downtrend compared to the prices recorded on July 1.
Average domestic HMS scrap prices in China are at RMB 2,120/mt ($311/mt) ex-warehouse, indicating a decline of RMB 25/mt on average compared to July 1, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS
|
> 6 mm
|
Tianjin | 2,165 | 318.0 | 0 | 0.0 |
| Liupanshui,Guizhou | 2,025 | 297.4 | -30 | -4.5 | ||
| Nanchang,Jiangxi | 2,110 | 309.9 | -20 | -3.0 | ||
| Handan,Hebei | 2,150 | 315.8 | -15 | -2.3 | ||
| Anyang,Henan | 2,175 | 319.5 | -20 | -3.0 | ||
| Zhangjiagang,Jiangsu | 2,130 | 312.9 | -45 | -6.7 | ||
| Jinan,Shandong | 2,085 | 306.3 | -45 | -6.7 | ||
| Average | 2,120 | 311.4 | -25 | -3.7 | ||
| 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 down further. On July 4, Jiangsu-based Shagang Group announced a RMB 50/mt ($7.3/mt) cut in its scrap purchase price, following a RMB 30/mt drop on June 24, signaling the continuous bearish sentiments as regards the future prospects for the scrap market. Meanwhile, ferrous metal futures prices have moved on a downward trend, exerting a negative impact on scrap prices. At the same time, demand for steel has been sluggish in the traditional off-season amid the widespread rainy weather and high temperatures. A few steelmakers have implemented temporary maintenance works, reducing scrap usage slightly, thereby also weakening scrap prices. It is thought that scrap prices in the Chinese domestic market will likely edge down in the coming week.
$1 = RMB 6.8077
