Average scrap prices in the Chinese domestic market have moved on a downward trend compared to the prices recorded on December 25 as demand has slowed amid the decline in steel consumption in winter and the downtrend of finished steel prices.
Average domestic HMS scrap prices in China are at RMB 2,251/mt ex-warehouse, decreasing by RMB 37/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 |
Price |
Weekly change |
Weekly change |
HMS scrap |
> 6 mm |
Tianjin |
2,420 |
336.7 |
-20 |
-2.8 |
Liupanshui,Guizhou |
2,185 |
304.0 |
-20 |
-2.8 |
||
Nanchang,Jiangxi |
2,165 |
301.2 |
0 |
0.0 |
||
Handan,Hebei |
2,320 |
322.8 |
-20 |
-2.8 |
||
Anyang,Henan |
2,185 |
304.0 |
-10 |
-1.4 |
||
Zhangjiagang,Jiangsu |
2,245 |
312.3 |
-85 |
-11.8 |
||
Jinan,Shandong |
2,235 |
310.9 |
-105 |
-14.6 |
||
Average |
2,251 |
313.1 |
-37 |
-5.2 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have moved down further amid the prevailing bearish sentiments. Shagang Group has already cut scrap purchase prices three times in January. Sellers have chosen to sell at lower prices to reduce inventory levels, aiming to avoid potential risks. At the same time, finished steel prices have also seen a downtrend as the Chinese New Year (January 28-February 4) is getting closer and closer, weakening support for scrap prices. The rapid increase in steelmakers’ inventories will also negatively affect scrap prices. It is thought that scrap prices in the Chinese domestic market may see further declines in the coming week.
The latest tradable ex-Japan HS scrap prices have lost $10/mt over the past two weeks to $300-330/mt CFR.
$1 = RMB 7.1887