Average scrap prices in the Chinese domestic market have seen declines compared to the prices recorded on May 28.
Average domestic HMS scrap prices in China are at RMB 2,144/mt ex-warehouse, edging down by RMB 18/mt ($2.5/mt) on average compared to the previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS |
> 6 mm | Tianjin | 2,255 | 313.8 | -35 | -4.8 |
| Liupanshui,Guizhou | 2,040 | 283.8 | -40 | -5.5 | ||
| Nanchang,Jiangxi | 2,080 | 289.4 | -10 | -1.4 | ||
| Handan,Hebei | 2,235 | 311.0 | -10 | -1.3 | ||
| Anyang,Henan | 2,140 | 297.8 | -20 | -2.7 | ||
| Zhangjiagang,Jiangsu | 2,140 | 297.8 | 0 | 0.0 | ||
| Jinan,Shandong | 2,120 | 295.0 | -10 | -1.4 | ||
| Average | 2,144 | 298.4 | -18 | -2.4 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices have continued to decline amid decreasing ferrous metal futures prices. Meanwhile, the delivery of scrap to steelmakers has been relatively high, exerting a negative impact on prices. As the traditional offseason during the hot summer weather is approaching, demand for scrap will be slack, weakening the support for prices. At the same time, coke prices have decreased, making production from iron ore more advantageous, and making scrap smelting less attractive in terms of costs. Bearish sentiments prevail among market players. It is expected that scrap prices in the Chinese domestic market will edge down slightly in the coming week.
$1 = RMB 7.1886
