Average scrap prices in the Chinese domestic market have indicated only slight changes compared to the prices recorded on June 18, while prices of other major raw materials have continued to fall, impacting EAF-based mills’ margins and resulting in reductions in steel production.
Average domestic HMS scrap prices in China are at RMB 2,161/mt ex-warehouse, edging up by just RMB 6/mt ($0.8/mt) on average compared to the previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
| Product name | Specification | Origin | Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
HMS |
> 6 mm | Tianjin | 2,245 | 313.3 | -10 | -1.0 |
| Liupanshui, Guizhou | 2,060 | 287.5 | 0 | +0.4 | ||
| Nanchang, Jiangxi | 2,070 | 288.9 | 0 | +0.4 | ||
| Handan, Hebei | 2,235 | 311.9 | -10 | -1.0 | ||
| Anyang, Henan | 2,160 | 301.4 | +40 | +6.0 | ||
| Zhangjiagang, Jiangsu | 2,180 | 304.2 | +20 | +3.2 | ||
| Jinan, Shandong | 2,180 | 304.2 | 0 | +0.4 | ||
| Average | 2,161 | 301.6 | 6 | +1.2 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
During the given week, scrap prices in the Chinese domestic market have fluctuated within a limited range amid the slack demand for steel during the traditional off-season. Some steelmakers have reduced their capacity utilization rates - for EAF mills this level is below 70 percent already, reflected in weak demand for scrap. Currently, there are limited scrap supplies arriving in the market, bolstering prices to a certain degree. It is thought that scrap prices in the Chinese domestic market will move sideways in the coming week.
$1 = RMB 7.1668