Average scrap prices in the Chinese domestic market have fluctuated within a limited range compared to the prices recorded on September 23.
Average domestic HMS scrap prices in China are at RMB 2,119/mt ($314.6/mt) ex-warehouse, indicating a drop of RMB 1/mt on average compared to September 23, according to SteelOrbis' information.
Average scrap prices in China's main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS
|
> 6 mm
|
Tianjin | 2,185 | 324.4 | 0 | 0.6 |
| Liupanshui,Guizhou | 2,055 | 305.1 | 0 | 0.5 | ||
| Nanchang,Jiangxi | 2,110 | 313.3 | -10 | -0.9 | ||
| Handan,Hebei | 2,150 | 319.2 | 10 | 2.0 | ||
| Anyang,Henan | 2,120 | 314.8 | 0 | 0.6 | ||
| Zhangjiagang,Jiangsu | 2,110 | 313.3 | 0 | 0.6 | ||
| Jinan,Shandong | 2,100 | 311.8 | -10 | -0.9 | ||
| Average | 2,119 | 314.6 | -1 | 0.3 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices have fluctuated within a limited range. Scrap traders had hoped for restocking activities ahead of the National Day holiday (October 1-7), but they did not materialize, leading many sellers to speed up shipments in a bid to shore up cash flow. In addition, due to tight invoice quotas, payments for scrap have been relatively slow, and overall sentiment remains pessimistic.
The demand for scrap from steel mills will continue to be the decisive factor determine the trend of scrap prices. Given that steel scrap has recently been more cost-effective than molten iron, scrap prices are unlikely to see a steep decline. Meanwhile, there will be less scrap arriving in the market due to the long holiday, which will bolster prices to a certain degree. It is expected that scrap prices in the Chinese market will fluctuate within a limited range in the coming week, with some positive bias anticipated after the holiday.
$1 = RMB 6.7351
