Average scrap prices in the Chinese domestic market have edged up slightly compared to the prices recorded before the long holiday, but steelmakers’ low profits may prevent any rebound.
Average domestic HMS scrap prices in China are at RMB 2,211/mt ex-warehouse, edging up by RMB 7/mt on average compared to September 24, 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 | 2,245 | 316.1 | 20 | 3.0 |
| Liupanshui,Guizhou | 2,095 | 295.0 | 30 | 4.4 | ||
| Nanchang,Jiangxi | 2,150 | 302.7 | 0 | 0.2 | ||
| Handan,Hebei | 2,310 | 325.3 | 10 | 1.6 | ||
| Anyang,Henan | 2,285 | 321.7 | 0 | 0.2 | ||
| Zhangjiagang,Jiangsu | 2,205 | 310.5 | -10 | -1.2 | ||
| Jinan,Shandong | 2,185 | 307.7 | 0 | 0.2 | ||
| Average | 2,211 | 311.3 | 7 | 1.2 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given period, scrap prices in the Chinese domestic market have fluctuated within a limited range. Most steelmakers replenished stocks following the long holiday, bolstering scrap prices to a certain degree. Meanwhile, stocks of scrap held by scrap processors have been at low levels, also providing support for prices. However, demand for scrap may not indicate any significant improvement as scrap does not offer an economic advantage compared to molten iron. It is thought that scrap prices in the Chinese domestic market will likely move sideways in the coming week.
$1 = RMB 7.0995
