During the week ending January 17, average prices of local steel scrap in the Chinese market have indicated a stable trend, 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, the Chinese authorities have shut down many intermediate frequency melting furnaces, resulting in reduced demand and slack transaction activity for scrap. However, the sharp rises in ferrous metal futures prices in China during the past few days have provided some support for scrap prices, enabling them to move on a stable trend. As the Chinese New Year holiday is approaching, market players are not positive as regards the prospects for the price trend in the scrap market. It is thought that scrap prices in the Chinese domestic market will likely move sideways in the coming week amid slacker demand.
Product Name | Spec. | Origin | Price (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
HMS scrap | > 6 mm | Tianjin | 1,850 | 270 | 0 |
Liupanshui | 1,730 | 252 | 0 | ||
Zhangjiagang | 1,820 | 265 | 0 | ||
Handan | 1,820 | 265 | 0 | ||
Nanchang | 1,750 | 255 | 0 | ||
Anyang | 1,750 | 255 | 0 | ||
Jinan | 1,860 | 271 | 0 | ||
Average | 1,797 | 262 | 0 |
All prices are ex-warehouse and include 17 percent VAT.
$1 = RMB 6.86