Average scrap prices in the Chinese domestic market have edged down compared to the prices recorded on July 31 due to weak demand. At the same time, the gap between local prices and ex-Japan HS offers has increased to as much as $38/mt on average as due to the appreciation of the Japanese yen, while dollar-based prices from Japan are almost stable.
Average domestic HMS scrap prices in China are at RMB 2,360/mt ex-warehouse, decreasing by RMB 33/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 |
Price |
Weekly change |
Weekly change |
HMS |
> 6 mm |
Tianjin |
2,450 |
343.5 |
-20 |
-2.6 |
Liupanshui,Guizhou |
2,320 |
325.3 |
0 |
0.2 |
||
Nanchang,Jiangxi |
2,270 |
318.3 |
-60 |
-8.2 |
||
Handan,Hebei |
2,440 |
342.1 |
-30 |
-4.0 |
||
Anyang,Henan |
2,300 |
322.5 |
-20 |
-2.6 |
||
Zhangjiagang,Jiangsu |
2,370 |
332.3 |
-50 |
-6.8 |
||
Jinan,Shandong |
2,370 |
332.3 |
-50 |
-6.8 |
||
Average |
2,360 |
330.9 |
-33 |
-4.4 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
On August 5, major Chinese steelmaker Shagang Group cut its scrap purchase prices by another RMB 50/mt ($7/mt), following a RMB 50/mt cut on July 26, reflecting continuing cautious sentiments as regards the future prospects for the scrap market. The demand for finished steel will unlikely see a significant improvement, which will exert a negative impact on the scrap market. At the same time, iron ore and coke prices have decreased, negatively affecting scrap prices. The relatively low inventory levels of scrap will likely bolster prices to a certain degree. It is thought that scrap prices in the Chinese market will likely edge down in the coming week.
The latest ex-Japan HS scrap offer prices have been heard at JPY 53,500/mt ($369/mt) CFR, decreasing by JPY 2,200/mt compared to July 31. But due to the exchange rate fluctuations, the dollar-based equivalent is just $2/mt lower than a week ago. The tradable level for imported scrap has been assessed at $330/mt CFR, down by $5/mt over the past week.
$1 = RMB 7.1386
