As of September 24, steel scrap prices in the Chinese domestic market have mostly decreased week on week, while transaction activity in the overall market has been at low-to-medium levels. Average scrap prices in China’s main markets are presented in the following table.
|
Product name |
Specification |
Origin |
Price |
Price |
Weekly change |
Weekly change |
|
HMS |
> 6 mm |
Tianjin |
2,825 |
399.4 |
-45 |
-6.4 |
|
Liupanshui,Guizhou |
2,645 |
374.0 |
-25 |
-3.5 |
||
|
Nanchang,Jiangxi |
2,530 |
357.7 |
0 |
0.0 |
||
|
Handan,Hebei |
2,720 |
384.6 |
-60 |
-8.5 |
||
|
Anyang,Henan |
2,680 |
378.9 |
-30 |
-4.2 |
||
|
Zhangjiagang,Jiangsu |
2,735 |
386.7 |
-25 |
-3.5 |
||
|
Jinan,Shandong |
2,770 |
391.6 |
-30 |
-4.2 |
||
|
Average |
2,701 |
381.8 |
-31 |
-4.3 |
All prices are ex-warehouse and include 13 percent VAT.
During the given week, the downtrend of rebar futures prices on September 17-20 exerted a negative impact on scrap prices. Meanwhile, Jiangsu Province-based Shagang Group, China’s largest private steelmaker, announced that as of September 20 it will cut its scrap purchase prices by RMB 40/mt ($5.6/mt), negatively affecting the scrap market and resulting in more downbeat sentiment among market players. However, as the National Day holiday is approaching, some steelmakers will likely build up stocks ahead of the holiday, which will support scrap prices. It is expected that scrap prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
$1=RMB 7.073