As of June 4, steel scrap prices in the Chinese domestic market have mostly decreased on week-on-week basis, though remaining stable in Liupanshui, while transaction activity in the overall market has been at low levels. Average scrap prices in China’s main markets are presented in the following table.
During the given week, due to high temperature and rainy weather in southern China, the demand for scrap has been slack and the activities have been at low levels. Meanwhile, steelmaker’ profitability has been shrunk and trying to lower purchasing prices for scrap, exerting a negative impact on scrap prices. At the same time, iron ore prices have seen downward corrections, weakening the support to scrap prices. However, since it is approaching to the Dragon Boat Festival holiday (June 7-9), steelmakers will likely build up inventory ahead of the holiday, which will likely bolster scrap prices. It is expected that scrap prices in the Chinese domestic market will move on a downward correction in the coming week.
Product Name |
Spec. |
Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly Change (RMB/mt) |
HMS scrap |
> 6 mm |
Tianjin |
2,690 |
389 |
↓45 |
Liupanshui |
2,575 |
373 |
0 |
||
Zhangjiagang |
2,670 |
386 |
↓10 |
||
Handan |
2,630 |
381 |
↓15 |
||
Nanchang |
2,520 |
365 |
↓10 |
||
Anyang |
2,520 |
365 |
↓30 |
||
Jinan |
2,670 |
386 |
↓40 |
||
Average |
2,611 |
378 |
↓21 |
All prices are ex-warehouse and include 13 percent VAT.
$1 = RMB 6.91