Average scrap prices in the Chinese domestic market have edged up but only slightly compared to the prices recorded on October 9, as the market has been showing signs of stability after the previous sharp rises. Concerns over demand have emerged again.
Average domestic HMS scrap prices in China are at RMB 2,366/mt ex-warehouse, increasing by RMB 6/mt 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 |
> 6 mm
|
Tianjin |
2,450 |
345.9 |
-20 |
-3.4 |
Liupanshui, Guizhou |
2,290 |
323.3 |
+65 |
+8.6 |
||
Nanchang, Jiangxi |
2,300 |
324.7 |
+20 |
+2.3 |
||
Handan, Hebei |
2,400 |
338.8 |
-40 |
-6.2 |
||
Anyang, Henan |
2,330 |
329.0 |
0 |
-0.6 |
||
Zhangjiagang, Jiangsu |
2,360 |
333.2 |
+20 |
+2.3 |
||
Jinan, Shandong |
2,430 |
343.1 |
0 |
-0.6 |
||
Average |
2,366 |
334.0 |
+6 |
+0.3 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have fluctuated within a limited range amid the fluctuations of ferrous metal futures prices. Following the previous big increases, market players’ expectations have gradually become more rational. Arrivals of scrap supplies at some steelmakers have been at relatively high levels, causing them to cut their scrap prices. The demand from downstream users has not matched the rapidly increasing steel prices, and so some market participants have chosen to sell scrap from inventories, weakening the support for prices. It is thought that scrap prices in the Chinese market may move from sideways to slightly down in the coming period.
The tradable level for ex-Japan HS scrap in China has remained stable over the past week at $330-340/mt CFR.
$1 = RMB 7.1191
