Average scrap prices in the Chinese domestic market have edged down slightly compared to the prices recorded on June 3.
Average domestic HMS scrap prices in China are at RMB 2,180/mt ($320/mt) ex-warehouse, down slightly on average compared to June 3, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS |
> 6 mm | Tianjin | 2,195 | 322.2 | 0 | +0.2 |
| Liupanshui, Guizhou | 2,065 | 303.1 | -10 | -1.2 | ||
| Nanchang, Jiangxi | 2,195 | 322.2 | 0 | +0.2 | ||
| Handan, Hebei | 2,205 | 323.6 | 0 | +0.2 | ||
| Anyang, Henan | 2,215 | 325.1 | +10 | +1.7 | ||
| Zhangjiagang, Jiangsu | 2,235 | 328.0 | 0 | +0.2 | ||
| Jinan, Shandong | 2,150 | 315.6 | -20 | -2.7 | ||
| Average | 2,180 | 320.0 | -3 | -0.2 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, average scrap prices in the Chinese domestic market have declined slightly amid slack demand in the traditional off-season. Finished steel prices have come under downward pressure, compressing steelmakers’ profit margins and curbing the demand for scrap, negatively affecting scrap prices. Since the production cost of molten iron is at relatively high levels, there is limited space for scrap prices to move down. Meanwhile, the tight supply of scrap will also bolster scrap prices to a certain degree. It is expected that scrap prices in the Chinese domestic market will soften in the coming week.
$1 = RMB 6.813
