Average scrap prices in the Chinese domestic market have moved down further compared to the prices recorded on November 5 as mills have reduced purchases, following the reduction in steel production and given the rather weak forecast for outputs by the end of this year.
Average domestic HMS scrap prices in China are at RMB 2,151/mt ex-warehouse, decreasing by RMB 25/mt on average compared to November 5, 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 | 2,150 | 303.4 | -35 | -4.9 |
| Liupanshui,Guizhou | 2,035 | 287.1 | -20 | -2.7 | ||
| Nanchang,Jiangxi | 2,110 | 297.7 | -20 | -2.7 | ||
| Handan,Hebei | 2,215 | 312.5 | -30 | -4.1 | ||
| Anyang,Henan | 2,195 | 309.7 | -20 | -2.7 | ||
| Zhangjiagang,Jiangsu | 2,200 | 310.4 | -35 | -4.8 | ||
| Jinan,Shandong | 2,150 | 303.4 | -15 | -2.0 | ||
| Average | 2,151 | 303.5 | -25 | -3.4 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
On November 8 and November 12, Jiangsu-based Shagang Group announced a RMB 60/mt ($8.4/mt) decline in total in its scrap purchase price, following a RMB 30/mt rise on October 26, exerting a negative impact on market sentiments. Ferrous metal futures prices have edged down in the given week, signaling bearish sentiments as regards the future prospects for the steel market. Meanwhile, some scrap suppliers have chosen a low-level inventory strategy, which will weaken the support for scrap prices. It is thought that scrap prices in the Chinese domestic market will soften further in the coming week.
Imports of ex-Japan scrap have remained halted in China as the tradable level for HS material for sellers is $340-350/mt CFR at the lowest, while buyers see the highest possible level at $300-310/mt CFR.
$1 = RMB 7.0833
