Average scrap prices in the Chinese domestic market have edged up compared to the previous week as demand from steel mills has been gradually improving, while inventories have been at relatively low levels.
Average domestic HMS scrap prices in China are at RMB 2,564/mt ex-warehouse, increasing by RMB 43/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 scrap |
> 6 mm |
Tianjin |
2,630 |
370.1 |
10 |
1.3 |
Liupanshui,Guizhou |
2,460 |
346.2 |
30 |
4.1 |
||
Nanchang,Jiangxi |
2,650 |
372.9 |
150 |
21.0 |
||
Handan,Hebei |
2,605 |
366.6 |
20 |
2.7 |
||
Anyang,Henan |
2,480 |
349.0 |
10 |
1.3 |
||
Zhangjiagang,Jiangsu |
2,625 |
369.4 |
50 |
6.9 |
||
Jinan,Shandong |
2,500 |
351.8 |
30 |
4.1 |
||
Average |
2,564 |
360.9 |
43 |
5.9 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have continued their uptrend amid tight supply. Since finished steel prices have increased gradually, while steelmakers have been more willing to buy scrap. However, as iron ore prices retreated slightly early this week, mills have been cautious in buying more expensive scrap. Steelmakers’ inventories of scrap are at relatively low levels, providing support to prices. Jiangsu-based Shagang Group, China’s largest private steelmaker, raised its scrap purchase price by RMB 80/mt ($11.3/mt) on April 23, positively affecting the scrap market. It is thought that scrap prices in the Chinese domestic market will likely edge up in the coming week, though at a slower pace.
The latest ex-Japan HS tradable scrap prices have been heard at $365/mt CFR, up by $10/mt over the past week. Some offers have been reported at $8-10/mt above this level.
$1 = RMB 7.1048