Average scrap prices in the Chinese domestic market have indicated declines compared to the previous week amid decreasing ferrous metal futures prices and the overall bearish moods in the steel market due to poor demand.
Average domestic HMS scrap prices in China are at RMB 2,622/mt ex-warehouse, decreasing by RMB 30/mt on average compared to 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 |
> 6 mm |
Tianjin |
2,730 |
381.4 |
-30 |
-5.8 |
|
Liupanshui,Guizhou |
2,530 |
353.5 |
-25 |
-4.9 |
||
|
Nanchang,Jiangxi |
2,555 |
357.0 |
-20 |
-4.3 |
||
|
Handan,Hebei |
2,720 |
380.0 |
-40 |
-7.2 |
||
|
Anyang,Henan |
2,655 |
371.0 |
-25 |
-5.0 |
||
|
Zhangjiagang,Jiangsu |
2,620 |
366.1 |
-40 |
-7.1 |
||
|
Jinan,Shandong |
2,545 |
355.6 |
-30 |
-5.7 |
||
|
Average |
2,622 |
366.4 |
-30 |
-5.7 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
On August 8, Jiangsu-based Shagang Group, China’s largest private steelmaker, has decreased its scrap purchase price by RMB 30/mt ($4.2/mt), signaling bearish sentiments as regards the future prospects for the scrap market. Scrap prices in the Chinese domestic market have moved down in the given week as rebar futures prices have moved on a downward trend. In the given week, floods in northern China have exerted a negative impact on the demand for steel, which resulted in increasing inventory levels of finished steel. The downtrend in steel prices has negatively affected the demand for scrap. It is expected that scrap prices in the Chinese domestic market will likely edge down further in the coming week.
The latest ex-Japan HS scrap tradable price level has been reported at $375-380/mt CFR, down by $5/mt over the past week.
$1 = RMB 7.1588