Average scrap prices in the Chinese domestic market have remained broadly stable compared to the levels recorded on July 8.
Average domestic HMS scrap prices in China currently stand at RMB 2,122/mt ($312.5/mt) ex-warehouse, indicating a marginal increase of RMB 2/mt compared to July 8, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table:
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS
|
> 6 mm
|
Tianjin | 2,165 | 318.8 | 0 | 0.8 |
| Liupanshui,Guizhou | 2,025 | 298.2 | 0 | 0.7 | ||
| Nanchang,Jiangxi | 2,110 | 310.7 | 0 | 0.8 | ||
| Handan,Hebei | 2,165 | 318.8 | 15 | 3.0 | ||
| Anyang,Henan | 2,175 | 320.3 | 0 | 0.8 | ||
| Zhangjiagang,Jiangsu | 2,130 | 313.7 | 0 | 0.8 | ||
| Jinan,Shandong | 2,085 | 307.0 | 0 | 0.8 | ||
| Average | 2,122 | 312.5 | 2 | 1.1 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, average scrap prices in China’s domestic market halted their previous downtrend and moved sideways. Finished steel demand has remained sluggish during the traditional offseason amid high temperatures and a series of severe weather events.
Meanwhile, steelmakers’ profitability has shown no significant improvement, prompting more producers to carry out maintenance work, which is expected to weigh on scrap demand in the second half of July. Accordingly, Chinese domestic scrap prices are likely to soften in the coming week.
$1 = RMB 6.791
