As of January 13, steel scrap prices in the Chinese domestic market have moved on an overall uptrend compared to the previous week amid firm demand. At the same time, offers for import scrap, from Japan, in particular, have been too high for the majority of Chinese mills and negotiations for only very small quantities have been heard.
Average domestic HMS scrap prices in China are at RMB 3,155/mt ($488/mt) ex-warehouse, increasing by RMB 85/mt ($13/mt) compared to January 6, 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 |
> 6 mm |
Tianjin |
3,320 |
512.2 |
55 |
8.0 |
|
Liupanshui,Guizhou |
2,995 |
462.0 |
45 |
6.5 |
||
|
Nanchang,Jiangxi |
3,040 |
469.0 |
70 |
10.4 |
||
|
Handan,Hebei |
3,260 |
502.9 |
60 |
8.8 |
||
|
Anyang,Henan |
3,150 |
486.0 |
55 |
8.0 |
||
|
Zhangjiagang,Jiangsu |
3,220 |
496.8 |
190 |
28.9 |
||
|
Jinan,Shandong |
3,100 |
478.2 |
120 |
18.1 |
||
|
Average |
3,155 |
486.7 |
85 |
12.7 |
Offer prices of ex-Japan HS scrap were heard at $505/mt CFR to China early this week, with a very small deal for less than 500 mt rumored at $500/mt CFR. Last week, SteelOrbis has reported a few trades at $470/mt CFR and $490-495/mt CFR for the same grade.
However, players in the Chinese market have said $420/mt CFR may be an attractive price level for Chinese buyers, taking into account the current local prices even after the increase, signaling that steel mills in Vietnam and South Korea will be better export destinations for Japanese scrap sellers.
During the given week, steel mills and traders have started to build up stocks of local scrap, bolstering its prices. However, steelmakers in northern China will lower production from January 15 amid the worsening Covid-19 pandemic and transportation restrictions, which will negatively affect the scrap market.
$1 = RMB 6.4605