Average scrap prices in the Chinese domestic market have edged down compared to the prices recorded on January 8 and due to the low levels of demand they will remain under pressure ahead of the Chinese New Year holiday (January 28-February 4).
Average domestic HMS scrap prices in China are at RMB 2,236/mt ex-warehouse, decreasing by RMB 15/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 |
Price |
Weekly change |
Weekly change |
HMS scrap |
> 6 mm |
Tianjin |
2,370 |
329.7 |
-50 |
-7.0 |
Liupanshui,Guizhou |
2,185 |
304.0 |
0 |
0.0 |
||
Nanchang,Jiangxi |
2,165 |
301.2 |
0 |
0.0 |
||
Handan,Hebei |
2,330 |
324.2 |
10 |
1.4 |
||
Anyang,Henan |
2,150 |
299.1 |
-35 |
-4.9 |
||
Zhangjiagang,Jiangsu |
2,215 |
308.2 |
-30 |
-4.2 |
||
Jinan,Shandong |
2,235 |
310.9 |
0 |
0.0 |
||
Average |
2,236 |
311.0 |
-15 |
-2.1 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have moved down slightly amid the negative impact from declining coke prices. Some steelmakers have cut scrap purchase prices to reduce their costs and increase efficiency. Scrap suppliers have preferred to keep low inventory levels, attempting to avoid potential risks and bring in cash ahead the Chinese New Year holiday. It is thought that scrap prices in the Chinese domestic market will likely edge down further in the coming week.
The latest ex-Japan HS scrap tradable levels have been at $300-330/mt CFR.
$1 = RMB 7.1883