During the week ending April 11, the local steel scrap market in China has continued to move on a downward trend, while transaction activity in the overall market has slowed down and is now at low levels. Average scrap prices in China's main markets are presented in the following table.
During the given week, since domestic finished steel and semi-finished steel prices have indicated significant declines, steelmakers in China have come under pressure to reduce their production costs and so have cut their purchase prices for scrap. The declines in scrap prices have resulted in an unwillingness among traders to sell their scrap materials, contributing to the slackening of transaction activity. The spot and futures markets for finished steel have been exerting a negative impact on the scrap market. It is expected that scrap prices in the Chinese domestic market will continue their downtrend in the coming week.
Product Name | Spec. | Origin | Price (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
HMS scrap | > 6 mm | Tianjin | 1,800 | 261 | ↓100 |
Liupanshui | 1,530 | 222 | ↓70 | ||
Zhangjiagang | 1,830 | 265 | ↓70 | ||
Handan | 1,810 | 262 | ↓80 | ||
Nanchang | 1,750 | 254 | ↓70 | ||
Anyang | 1,650 | 239 | ↓70 | ||
Jinan | 1,870 | 271 | ↓70 | ||
Average | 1,749 | 253 | ↓76 |
All prices are ex-warehouse and include 17 percent VAT.
$1 = RMB 6.90