Average scrap prices in the Chinese domestic market have edged down slightly compared to the prices recorded on May 21 due to slower demand and the worsening of mills’ margins.
Average domestic HMS scrap prices in China are at RMB 2,162/mt ex-warehouse, edging down by RMB 24/mt ($3.1/mt) on average compared to the previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS |
> 6 mm | Tianjin | 2,290 | 318.6 | -10 | -1.2 |
| Liupanshui,Guizhou | 2,080 | 289.4 | -20 | -2.6 | ||
| Nanchang,Jiangxi | 2,090 | 290.8 | -10 | -1.2 | ||
| Handan,Hebei | 2,245 | 312.3 | -20 | -2.6 | ||
| Anyang,Henan | 2,160 | 300.5 | -55 | -7.4 | ||
| Zhangjiagang,Jiangsu | 2,140 | 297.7 | -50 | -6.7 | ||
| Jinan,Shandong | 2,130 | 296.3 | 0 | 0.2 | ||
| Average | 2,162 | 300.8 | -24 | -3.1 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices have edged down slightly amid increasing inventories. On May 27, Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 50/mt ($7/mt) cut in its scrap purchase price, reflecting bearish sentiments as regards the future prospects for the scrap market. Since the traditional offseason is approaching, the activities of downstream construction sites will slow down, which will slacken the demand for finished steel and reduce purchases of scrap. It is thought that scrap prices in the Chinese domestic market will edge down further in the coming week.
$1 = RMB 7.1894