Average scrap prices in the Chinese domestic market have indicated a decreasing trend compared to last week due to low demand amid production cuts in the November-December period.
Average domestic HMS scrap prices in China are at RMB 2,127/mt ex-warehouse, decreasing by RMB 27/mt on average compared to November 19, 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 | 2,215 | 312.7 | 0 | 0.1 |
| Liupanshui,Guizhou | 1,995 | 281.7 | -30 | -4.1 | ||
| Nanchang,Jiangxi | 2,080 | 293.7 | -30 | -4.1 | ||
| Handan,Hebei | 2,160 | 305.0 | -55 | -7.6 | ||
| Anyang,Henan | 2,160 | 305.0 | -25 | -3.4 | ||
| Zhangjiagang,Jiangsu | 2,140 | 302.1 | -50 | -6.9 | ||
| Jinan,Shandong | 2,140 | 302.1 | 0 | 0.1 | ||
| Average | 2,127 | 300.3 | -27 | -3.7 | ||
| Note: Prices include 3 percent VAT as of March 1 2022. | ||||||
On November 22, Jiangsu-based Shagang Group announced a RMB 30-60/mt ($4.2-8.4/mt) decline in its scrap purchase price, following a RMB 30/mt decrease on November 12, exerting a negative impact on market sentiments. Approaching the end of the year, more steelmakers have implemented maintenance works as they gradually completed their output target for the year, negatively affecting the demand for scrap. However, iron ore prices have lately increased, bolstering scrap prices to a certain degree. Most market players have chosen to adopt a low-inventory strategy, aiming to reduce potential risks. It is thought that scrap prices in the Chinese domestic market will soften in the coming week.
$1 = RMB 7.0796
