During the week ending March 5, steel scrap prices in the Chinese domestic market have mostly softened, though moving sideways in Liupanshui, Nanchang and Jinan, while transaction activity in the overall market has been at low-to-medium levels. Average scrap prices in China’s main markets are presented in the following table.
During the given week, since activities at construction sites in China have not yet recovered to anticipated levels, domestic demand for finished steel has been at low-to-medium levels. Meanwhile, finished steel inventories are at relatively high levels. Steelmakers’ profit margins have narrowed and so they are seeking lower purchase prices for scrap. Electric furnaces’ capacity utilization rates have risen slightly, which will increase the demand for scrap. However, finished steel prices are unlikely to indicate sharp rises, which will limit the rising movement of scrap prices. It is expected that scrap prices in the Chinese domestic market will move sideways in the coming week.
|
Product Name |
Spec. |
Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly Change (RMB/mt) |
|
HMS scrap |
> 6 mm |
Tianjin |
2,820 |
421 |
↓30 |
|
Liupanshui |
2,470 |
369 |
0 |
||
|
Zhangjiagang |
2,810 |
419 |
↓20 |
||
|
Handan |
2,685 |
401 |
↓35 |
||
|
Nanchang |
2,620 |
391 |
0 |
||
|
Anyang |
2,495 |
372 |
↓25 |
||
|
Jinan |
2,750 |
410 |
0 |
||
|
Average |
2,664 |
398 |
↓16 |
All prices are ex-warehouse and include 16 percent VAT.
$1 = RMB 6.70