Average scrap prices in the Chinese domestic market have edged down slightly compared to the previous week amid the decreasing finished steel prices and weakening of demand. At the same time, imports have remained halted.
Average domestic HMS scrap prices in China are at RMB 2,579/mt ex-warehouse, moving down by RMB 6/mt on average compared to June 21, 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 |
> 6 mm |
Tianjin |
2,640 |
366.2 |
-15 |
-4.7 |
|
Liupanshui,Guizhou |
2,450 |
339.8 |
0 |
-2.4 |
||
|
Nanchang,Jiangxi |
2,555 |
354.4 |
0 |
-2.5 |
||
|
Handan,Hebei |
2,625 |
364.1 |
-25 |
-6.0 |
||
|
Anyang,Henan |
2,555 |
354.4 |
-50 |
-9.5 |
||
|
Zhangjiagang,Jiangsu |
2,655 |
368.2 |
0 |
-2.6 |
||
|
Jinan,Shandong |
2,575 |
357.1 |
45 |
3.8 |
||
|
Average |
2,579 |
357.7 |
-6 |
-3.4 |
||
|
Note: Prices include 3 percent VAT as of March 1, 2022. |
||||||
During the given week, rebar futures prices moved down first, exerting a negative impact on scrap market. However, rebar futures prices indicated a rebounding trend since June 27, bolstering market players’ sentiments to some extent. The continuous rainy weather shrunk the supply of scrap, providing certain support to its prices. However, finished steel prices moved down due to the high temperature and large-scale rainy weather, negatively affecting the scrap market. It is expected that scrap prices in the Chinese domestic market will likely edge down further in the coming week.
The latest highest possible ex-Japan HS scrap tradable prices have been at around $380/mt CFR, slightly down from $380-390/mt CFR last week. Depreciation of RMB against dollar has led to bids remain hardly above $370/mt CFR from the number of buyers. At the same time, Japanese suppliers have been still able to sell HS scrap at close to $400/mt CFR to S. Korea.
$1 = RMB 7.2101