Average scrap prices in the Chinese domestic market have edged up compared to the prices recorded on August 6 as prices rises in other raw materials like coking coal and coke, used for pig iron production, have made scrap a little more attractive. However, the ongoing slowness of demand and the lack of any big change in steel prices have prevented scrap prices from indicating significant increases.
Average domestic HMS scrap prices in China are at RMB 2,215/mt ex-warehouse, edging up by RMB 21/mt on average compared to 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 | 2,255 | 315.7 | 10 | 1.2 |
| Liupanshui,Guizhou | 2,075 | 290.5 | 45 | 6.1 | ||
| Nanchang,Jiangxi | 2,180 | 305.2 | 50 | 6.8 | ||
| Handan,Hebei | 2,300 | 322.0 | 20 | 2.6 | ||
| Anyang,Henan | 2,265 | 317.1 | 20 | 2.6 | ||
| Zhangjiagang,Jiangsu | 2,205 | 308.7 | 0 | -0.2 | ||
| Jinan,Shandong | 2,225 | 311.5 | 0 | -0.2 | ||
| Average | 2,215 | 310.1 | 21 | 2.7 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices in the Chinese domestic market have edged up slightly as increasing coke prices have pushed up the production cost of molten iron, making scrap more attractive in terms of costs. Demand for scrap has improved, bolstering its price to a certain degree. The high summer temperatures have contributed to the tight supply of scrap. However, steelmakers’ profitability has been hit by rising coke prices, and this will exert a negative impact on scrap prices. It is expected that scrap prices in the Chinese domestic market will move sideways in the coming week.
$1 = RMB 7.135