Average scrap prices in the Chinese domestic market have moved down compared to the prices recorded on April 2 after a lasting period of stabilization.
Average domestic HMS scrap prices in China are at RMB 2,161/mt ex-warehouse, moving down by RMB 62/mt ($8.6/mt) on average compared to the previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS |
> 6 mm | Tianjin | 2,280 | 316.5 | -80 | -12.3 |
| Liupanshui,Guizhou | 2,050 | 284.6 | -70 | -10.8 | ||
| Nanchang,Jiangxi | 2,110 | 292.9 | -60 | -9.4 | ||
| Handan,Hebei | 2,245 | 311.6 | -65 | -10.2 | ||
| Anyang,Henan | 2,150 | 298.4 | -35 | -6.0 | ||
| Zhangjiagang,Jiangsu | 2,175 | 301.9 | -40 | -6.7 | ||
| Jinan,Shandong | 2,120 | 294.3 | -85 | -12.9 | ||
| Average | 2,161 | 300.0 | -62 | -9.7 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices have moved on a downtrend. On April 9, Shagang Group announced a RMB 30/mt ($4.2/mt) decrease in its scrap purchase price, following a RMB 30/mt decline on March 19, signaling weak sentiments as regards the future prospects for the scrap market. Inventories of scrap have risen, while demand has not improved. At the same time, ferrous metal futures prices have moved down, weakening the support for scrap prices. In addition, the reciprocal US tariffs on China have negatively affected market sentiments. It is expected that scrap prices in the Chinese domestic market will edge down further in the coming week.
The latest ex-Japan HS scrap tradable price stands at $295-305/mt CFR, which is even below what Japanese suppliers may offer on FOB basis.
$1 = RMB 7.2066
