Local scrap prices in China continue to strengthen on back of tight supply, imports inactive

Wednesday, 21 July 2021 15:34:31 (GMT+3)   |   Shanghai
       

Tight supply coupled with decreasing inventories at steel enterprises has continued to provide a certain support to local scrap prices in China. Nevertheless, trading activity in the import market in China has remained quiet due to the continuing divergence between interests of sellers and customers. Despite no fresh scrap offers have been heard to China, market sources believe that the highest workable level for China would be at $540/mt CFR, $60/mt less than prices targeted by sellers.

Meanwhile, average domestic HMS scrap prices in China are at RMB 3,711/mt ($572.1/mt) ex-warehouse, increasing by RMB 51/mt compared to July 14, 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

scrap

> 6 mm

Tianjin

3,785

583.6

25

3.0

Liupanshui,Guizhou

3,660

564.3

0

-0.9

Nanchang,Jiangxi

3,695

569.7

125

18.4

Handan,Hebei

3,815

588.2

15

1.4

Anyang,Henan

3,735

575.9

90

13.0

Zhangjiagang,Jiangsu

3,785

583.6

75

10.7

Jinan,Shandong

3,500

539.6

30

3.8

Average

3,711

572.1

51

7.1

Specifically, during the given week adverse weather conditions have exerted a negative impact on domestic scrap supplies, arriving in the spot market in China and concurrently, have encouraged local steelmakers to further bolster its scrap purchase prices to some extent. Despite, the steelmakers’ scrap consumption has decreased recently due to the production restrictions, scrap prices in the Chinese domestic market are expected to edge up further in the coming week.

$1 = RMB 6.4835


Similar articles

Mexican domestic scrap prices

28 Mar | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 13, 2024

28 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap prices stabilize at $385-390/mt CFR

28 Mar | Scrap & Raw Materials

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

US scrap market still expecting sideways pricing in April

27 Mar | Scrap & Raw Materials

Ex-US deep sea scrap prices to Turkey increase, ex-EU prices relatively stable

27 Mar | Scrap & Raw Materials

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Average local Chinese scrap prices rise amid tight supply after previous decreases

27 Mar | Scrap & Raw Materials

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials

Baltic countries and Czech Republic seek EU ban on ex-Russia scrap imports

27 Mar | Steel News