Average scrap prices in the Chinese domestic market have indicated slight decreases compared to the prices recorded on March 12.
Average domestic HMS scrap prices in China are at RMB 2,225/mt ex-warehouse, decreasing by RMB 1/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 scrap |
> 6 mm | Tianjin | 2,330 | 324.8 | -20 | -2.7 |
| Liupanshui,Guizhou | 2,130 | 296.9 | 0 | 0.0 | ||
| Nanchang,Jiangxi | 2,150 | 299.7 | 10 | 1.4 | ||
| Handan,Hebei | 2,340 | 326.2 | 0 | 0.0 | ||
| Anyang,Henan | 2,205 | 307.4 | -20 | -2.7 | ||
| Zhangjiagang,Jiangsu | 2,185 | 304.6 | 25 | 3.5 | ||
| Jinan,Shandong | 2,235 | 311.6 | 0 | 0.0 | ||
| Average | 2,225 | 310.2 | -1 | -0.1 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, finished steel prices have moved down, exerting a negative impact on the scrap market. Meanwhile, demand for scrap has slackened as production costs have become less advantageous compared to iron ore. The supply of scrap is relatively tight at present.
On March 19, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 30/mt ($4.2/mt) decrease in its scrap purchase price, following a RMB 50/mt drop on January 19, reflecting the downbeat market sentiments.
It is expected that scrap prices in the Chinese domestic market will edge down in the coming week.
The latest ex-Japan HS scrap tradable price has been at $310-315/mt CFR, while offers have been above $340/mt CFR.
$1 = RMB 7.1697