Average scrap prices in the Chinese domestic market have edged up slightly compared to the prices recorded on June 11.
Average domestic HMS scrap prices in China are at RMB 2,156/mt ex-warehouse, edging up by RMB 7/mt ($1/mt) on average compared to previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS scrap |
> 6 mm | Tianjin | 2,255 | 314.3 | 0 | 0.4 |
| Liupanshui,Guizhou | 2,060 | 287.1 | 0 | 0.4 | ||
| Nanchang,Jiangxi | 2,070 | 288.5 | 0 | 0.4 | ||
| Handan,Hebei | 2,245 | 312.9 | 0 | 0.4 | ||
| Anyang,Henan | 2,120 | 295.5 | 0 | 0.4 | ||
| Zhangjiagang,Jiangsu | 2,160 | 301.0 | 20 | 3.2 | ||
| Jinan,Shandong | 2,180 | 303.8 | 30 | 4.6 | ||
| Average | 2,156 | 300.4 | 7 | 1.4 | ||
| Note: Prices include 3 percent VAT as of March 1, 2022. | ||||||
During the given week, scrap prices saw slight increases amid low inventory levels. However, capacity utilization at electric furnace plants decreased, reducing scrap consumption and weakening support for scrap prices. Scrap prices have been higher than molten iron, and as a result, some steelmakers reduced scrap usage, exerting downward pressure on prices. Since it has been the traditional off-season for the steel industry, especially amid widespread rainy weather and high temperatures, steelmakers may reduce scrap consumption further. It is expected that scrap prices in the Chinese domestic market will soften in the coming week.
$1 = RMB 7.1761