Average scrap prices in the Chinese domestic market have continued to fluctuate in a limited range in the past week, with only a slight decline seen in Jiangxi and Hebei, but in the general market is balanced.
Average domestic HMS scrap prices in China are at RMB 2,176/mt ($319.5/mt) ex-warehouse, indicating a slight decrease on average compared to June 10, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS
|
> 6 mm
|
Tianjin | 2,195 | 322.3 | 0 | 0.1 |
| Liupanshui,Guizhou | 2,065 | 303.2 | 0 | 0.1 | ||
| Nanchang,Jiangxi | 2,175 | 319.4 | -20 | -2.8 | ||
| Handan,Hebei | 2,195 | 322.3 | -10 | -1.3 | ||
| Anyang,Henan | 2,215 | 325.3 | 0 | 0.1 | ||
| Zhangjiagang,Jiangsu | 2,235 | 328.2 | 0 | 0.1 | ||
| Jinan,Shandong | 2,150 | 315.7 | 0 | 0.1 | ||
| Average | 2,176 | 319.5 | -4 | -0.5 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, average scrap prices in the Chinese domestic market have edged down slightly amid declining finished steel prices. Steelmakers have cut purchase prices for scrap to reduce production costs. Recently, the rapid rises in coke prices have pushed up the production costs of molten iron, which has exerted a positive impact on the scrap market. Meanwhile, the decreasing supply of scrap has also bolstered prices to a certain degree. The scrap market is currently facing a tight equilibrium characterized by weakness on both the supply and demand sides. It is thought that scrap prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
$1 = RMB 6.8096
