The rises in demand and in prices of raw material in general, such as iron ore, have bolstered domestic scrap prices in China. Import bids have also improved, though major sellers are still waiting for further increases.
Average domestic HMS scrap prices in China are at RMB 3,587/mt ($561/mt) ex-warehouse, increasing by RMB 121/mt compared to June 1, 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 |
3,760 |
588.3 |
110 |
14.2 |
Liupanshui,Guizhou |
3,470 |
543.0 |
260 |
38.0 |
||
Nanchang,Jiangxi |
3,500 |
547.6 |
165 |
23.0 |
||
Handan,Hebei |
3,645 |
570.3 |
55 |
5.6 |
||
Anyang,Henan |
3,800 |
594.6 |
120 |
15.7 |
||
Zhangjiagang,Jiangsu |
3,590 |
561.7 |
130 |
17.4 |
||
Jinan,Shandong |
3,345 |
523.4 |
10 |
-1.2 |
||
Average |
3,587 |
561.3 |
121 |
16.1 |
During the given week, raw material prices have risen, exerting a positive impact on scrap prices. The steel scrap prices in those regions which indicated big declines previously have seen a rebound. However, the big fluctuations in scrap prices in May negatively affected market players’ sentiments. It is thought that steel scrap prices may increase in the coming week due to steelmakers’ decent profitability and good demand for scrap.
The tradable price level for import HS scrap in China has increased by $5-10/mt from last week to $510-520/mt CFR. But trading activity is still slack as Japanese sellers are asking for much higher prices - not less than $540/mt CFR, while official offers are at $570/mt CFR.
$1 = RMB 6.3956