Average scrap prices in the Chinese domestic market have edged up slightly compared to the prices recorded on April 23 amid firm demand for scrap ahead of the Labor Day holiday, but the outlook is rather stable, and some decline is possible if steel production declines.
Average domestic HMS scrap prices in China are at RMB 2,181/mt ex-warehouse, edging up by RMB 29/mt ($4/mt) on average compared to the previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table:
| Product name | Specification | Origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS |
> 6 mm | Tianjin | 2,285 | 317.2 | +10 | +1.6 |
| Liupanshui, Guizhou | 2,110 | 292.9 | +20 | +2.9 | ||
| Nanchang, Jiangxi | 2,130 | 295.7 | +60 | +8.5 | ||
| Handan, Hebei | 2,265 | 314.5 | +10 | +1.6 | ||
| Anyang, Henan | 2,180 | 302.7 | +60 | +8.5 | ||
| Zhangjiagang, Jiangsu | 2,180 | 302.7 | +40 | +5.7 | ||
| Jinan, Shandong | 2,120 | 294.3 | 0 | +0.2 | ||
| Average | 2,181 | 302.9 | +29 | +4.1 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices in the Chinese domestic market have edged up amid decreasing inventory levels. Demand for finished steel has improved to a certain degree, exerting a positive impact on scrap consumption and bolstering prices. Ahead of the Labor Day holiday (May 1-5), most steelmakers have chosen to raise their scrap purchase prices due to their insufficient inventories. However, some steelmakers plan to implement maintenance works after the long holiday, which will reduce scrap consumption. It is thought that scrap prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
$1 = RMB 7.2116