Average scrap prices in the Chinese domestic market have seen declines compared to the prices recorded on October 15 and the outlook for the near future is also rather weak even though steel futures posted small rises today.
Average domestic HMS scrap prices in China are at RMB 2,192/mt ex-warehouse, edging down by RMB 19/mt on average compared to October 15, 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 | 2,195 | 309.5 | -50 | -6.6 |
| Liupanshui,Guizhou | 2,075 | 292.5 | -20 | -2.4 | ||
| Nanchang,Jiangxi | 2,130 | 300.3 | -20 | -2.4 | ||
| Handan,Hebei | 2,310 | 325.7 | 0 | 0.4 | ||
| Anyang,Henan | 2,265 | 319.3 | -20 | -2.4 | ||
| Zhangjiagang,Jiangsu | 2,205 | 310.9 | 0 | 0.4 | ||
| Jinan,Shandong | 2,165 | 305.2 | -20 | -2.4 | ||
| Average | 2,192 | 309.1 | -19 | -2.2 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given period, scrap prices in the Chinese domestic market have edged down slightly amid the slightly increasing inventories on steelmakers’ side. The prevailing cautious sentiments exerted a negative impact on scrap prices. Meanwhile, the production restrictions in Tangshan due to the 4th Plenary Session of the 20th CPC Central Committee (till 24:00 on October 23) negatively affected scrap market. Currently, the supply-demand imbalance in the finished steel market has yet to be fundamentally eased. Steelmakers have been seeing slow profit recovery, while their production operations have been under pressure, which restrained the upward momentum of scrap prices. It is expected that scrap prices in the Chinese domestic market will edge down in the coming week.
$1 = RMB 7.0954
