Average scrap prices in the Chinese domestic market have fluctuated within a limited range in the past week, but sentiments have been negative due to the falling profits of mills and weakening demand for this raw material.
Average domestic HMS scrap prices in China are at RMB 2,149/mt ex-warehouse, edging up by RMB 5/mt ($0.7/mt) on average compared to previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS scrap |
> 6 mm | Tianjin | 2,255 | 313.9 | 0 | +0.1 |
| Liupanshui, Guizhou | 2,060 | 286.7 | +20 | +2.9 | ||
| Nanchang, Jiangxi | 2,070 | 288.1 | -10 | -1.3 | ||
| Handan, Hebei | 2,245 | 312.5 | +10 | +1.5 | ||
| Anyang, Henan | 2,120 | 295.1 | -20 | -2.7 | ||
| Zhangjiagang, Jiangsu | 2,140 | 297.9 | 0 | +0.1 | ||
| Jinan, Shandong | 2,150 | 299.3 | +30 | +4.3 | ||
| Average | 2,149 | 299.1 | +4 | +0.7 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices have fluctuated within a limited range. Steelmakers’ profitability has continued to shrink. Meanwhile, the third round of cuts has been implemented for coke prices, making scrap less competitive than molten iron. Demand for scrap has slackened, exerting a negative impact on prices. Inventory of scrap held by steelmakers has risen, weakening the support for prices. However, there have been limited scrap supplies arriving in the market, bolstering prices to a certain degree. Due to the plum rainy season in the lower and middle reaches of the Yangtze River, the demand for steel will remain slack, which will negatively affect the scrap market. It is thought that scrap prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
$1 = RMB 7.1815