Over the past week the Chinese scrap market has continued to be boosted by the strong performance of the finished steel market. Meanwhile, China's scrap import volume has started to shrink considerably following the continuous climb in imported scrap prices.
Product name |
Specification |
Place of origin |
Price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
HMS scrap |
> 6 mm |
Jiangsu |
2,680 |
+50 |
393 |
+7 |
Shandong |
2,600 |
- |
381 |
- |
Over the past week scrap prices in China have remained on an upward trend. At present, mainstream quotations of heavy scrap in Jiangsu Province are up by RMB 50/mt ($7/mt) to the range of RMB 2,650-2,700/mt ($388-395/mt) while the purchase prices of some mills in this province for shredded scrap are at RMB 2,700-2,750/mt ($395-403/mt). Meanwhile, market prices of heavy scrap in Shandong Province have remained unchanged at RMB 2,600-2,650/mt ($381-388/mt), with scrap prices staying at RMB 2,550-2,600/mt ($374-381/mt) in the central regions of China.
Generally speaking, the increased domestic finished steel prices have greatly contributed to the overall rise in the Chinese scrap market in the various regions. At present, the price of 25 mm HRB 335 rebar in Shanghai has already reached the level of RMB 3,600/mt ($528/mt) on theoretical weight basis. Stimulated by the finished steel market, the scrap market has observed brisk commercial activity in recent days. Looking at the current situation, players generally appear optimistic as regards the prospects for the future trend of the domestic scrap market as long as the finished steel market maintains its positive performance.
In addition, imported scrap prices have soared significantly in recent days. Currently, import prices of ex-US HMS I/II 80:20 are at $335/mt CFR, while export quotations of H2 scrap from Japan are up to $325/mt CFR. International scrap buyers have again entered the market to make purchases, thereby pushing up scrap prices in the global market. As a result, it has become more difficult to see deals for imported scrap concluded in China.
According to the latest statistics, China's scrap imports for October totaled 1.024 million mt, down 279,000 mt or 21.4 percent month on month. Meanwhile, the total scrap imports in the January-October period amounted to 12.22 million mt, up 9.7 million mt or 385 percent year on year. The US and Japan have continued to be the main sources of scrap for China, with the scrap imports from these two countries reaching 440,000 mt and 208,000 mt respectively in the month of October.