Average scrap prices in the Chinese domestic market have seen diverse trends compared to the prices recorded on November 12, while the negative outlook has persisted due to weak demand for steel and the cost pressure on mills.
Average domestic HMS scrap prices in China are at RMB 2,154/mt ex-warehouse, increasing by RMB 4/mt on average compared to November 12, 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 | 2,215 | 312.6 | 65 | 9.2 |
| Liupanshui,Guizhou | 2,025 | 285.8 | -10 | -1.4 | ||
| Nanchang,Jiangxi | 2,110 | 297.8 | 0 | 0.0 | ||
| Handan,Hebei | 2,215 | 312.6 | 0 | 0.0 | ||
| Anyang,Henan | 2,185 | 308.4 | -10 | -1.4 | ||
| Zhangjiagang,Jiangsu | 2,190 | 309.1 | -10 | -1.4 | ||
| Jinan,Shandong | 2,140 | 302.0 | -10 | -1.4 | ||
| Average | 2,154 | 304.0 | 4 | 0.5 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
On November 12, Jiangsu-based Shagang Group announced another RMB 30/mt ($4.2/mt) decline in its scrap purchase price, following a RMB 30/mt decrease on November 8, negatively affecting market sentiments. Deliveries of scrap decreased first during the past week, while moving up later, affecting prices accordingly. Since scrap prices are not competitive compared to molten iron, steelmakers have been unwilling to consume scrap. Meanwhile, demand for finished steel has been sluggish due to the traditional offseason, which will exert a negative impact on scrap prices. It is expected that scrap prices in the Chinese domestic market will edge down slightly in the coming week.
$1 = RMB 7.0872
