Average scrap prices in the Chinese domestic market have posted minimal changes compared to the prices recorded on May 7 as both demand and supply have been under pressure. Nevertheless, the recent move of Shagang to increase scrap purchase prices has brought more positive expectations.
Average domestic HMS scrap prices in China are at RMB 2,178/mt ex-warehouse, edging down by RMB 2/mt ($0.28/mt) on average compared to the previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS |
> 6 mm | Tianjin | 2,300 | 319.5 | 25 | 3.6 |
| Liupanshui,Guizhou | 2,090 | 290.3 | -20 | -2.7 | ||
| Nanchang,Jiangxi | 2,100 | 291.7 | -30 | -4.1 | ||
| Handan,Hebei | 2,265 | 314.6 | 0 | 0.1 | ||
| Anyang,Henan | 2,190 | 304.2 | 10 | 1.5 | ||
| Zhangjiagang,Jiangsu | 2,190 | 304.2 | 10 | 1.5 | ||
| Jinan,Shandong | 2,110 | 293.1 | -10 | -1.3 | ||
| Average | 2,178 | 302.5 | -2 | -0.2 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
On May 13, Jiangsu-based Shagang Group, China’s largest private steelmaker announced a RMB 50/mt ($7/mt) increase in its scrap purchase price, following a RMB 50/mt rise on April 25, signaling improved sentiments as regards the future prospects for the scrap market, which bolstered scrap prices to a certain degree. However, the apparent consumption of finished steel has not been good in the given week, while there will be a lot of rainy weather in some regions of China in the coming period, which will exert a negative impact on market sentiments and drag down scrap prices. However, there is currently limited circulation of scrap in the market, which will provide some support for prices. It is thought that scrap prices in the Chinese domestic market may move slightly up in the coming week.
$1 = RMB 7.1956