Average scrap prices in the Chinese domestic market have seen slight declines compared to the prices recorded on June 25. And even though some increase in local longs prices has been seen in the middle of this week, market sources said that the level of scrap prices is already high, so it is unlikely that any positive signs will be seen for scrap in July.
Average domestic HMS scrap prices in China are at RMB 2,156/mt ex-warehouse, edging down by RMB 6/mt ($0.8/mt) on average compared to the previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS |
> 6 mm | Tianjin | 2,255 | 315.3 | 10 | 2.0 |
| Liupanshui,Guizhou | 2,020 | 282.4 | -40 | -5.1 | ||
| Nanchang,Jiangxi | 2,070 | 289.4 | 0 | 0.5 | ||
| Handan,Hebei | 2,235 | 312.5 | 0 | 0.6 | ||
| Anyang,Henan | 2,160 | 302.0 | 0 | 0.5 | ||
| Zhangjiagang,Jiangsu | 2,160 | 302.0 | -20 | -2.2 | ||
| Jinan,Shandong | 2,190 | 306.2 | 10 | 2.0 | ||
| Average | 2,156 | 301.4 | -6 | -0.3 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices in the Chinese domestic market have indicated slight decreases amid the weak performance in the finished steel market. Levels of supplies arriving in the market have varied in the different regions of China amid the high temperatures and heavy rains. The demand for finished steel has been in a downward channel, weakening the demand for scrap and exerting a negative impact on 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 7.1546