Average scrap prices in the Chinese domestic market have edged up slightly compared to the prices recorded on July 3 mainly due to low inventories and tight supplies, though steel market sentiments have remained bearish.
Average domestic HMS scrap prices in China are at RMB 2,514/mt ex-warehouse, increasing by RMB 7/mt on average compared to the 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 |
Price |
Weekly change |
Weekly change |
HMS scrap |
> 6 mm |
Tianjin |
2,575 |
361.1 |
-10 |
-1.5 |
Liupanshui,Guizhou |
2,450 |
343.6 |
0 |
-0.1 |
||
Nanchang,Jiangxi |
2,440 |
342.2 |
30 |
4.1 |
||
Handan,Hebei |
2,575 |
361.1 |
10 |
1.3 |
||
Anyang,Henan |
2,450 |
343.6 |
0 |
-0.1 |
||
Zhangjiagang,Jiangsu |
2,575 |
361.1 |
30 |
4.1 |
||
Jinan,Shandong |
2,530 |
354.8 |
-10 |
-1.5 |
||
Average |
2,514 |
352.5 |
7 |
0.9 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
On July 6, Jiangsu-based Shagang Group announced a RMB 50/mt ($7/mt) rise in its scrap purchase price, exerting a positive impact on market sentiments. Meanwhile, inventory of scrap has been at relatively low levels, bolstering prices to a certain degree. Steelmakers in some regions have raised their purchase prices for scrap amid the decreasing supplies arriving at the market. However, demand for finished steel will remain sluggish during the traditional offseason, which will negatively affect the scrap market. It is thought that scrap prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
The latest tradable level for ex-Japan HS scrap has been at $350-355/mt CFR, versus $345-350/mt CFR last week.
$1 = RMB 7.1342