Average scrap prices in the Chinese domestic market have moved on a downtrend compared to the previous week as there has been slower-than-expected stock replenishment activity ahead of the long holiday.
Average domestic HMS scrap prices in China are at RMB 2,659/mt ex-warehouse, decreasing by RMB 14/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 |
2,710 |
377.8 |
-30 |
-4.2 |
Liupanshui,Guizhou |
2,585 |
360.4 |
-20 |
-2.8 |
||
Nanchang,Jiangxi |
2,660 |
370.8 |
+35 |
+4.9 |
||
Handan,Hebei |
2,700 |
376.4 |
-30 |
-4.2 |
||
Anyang,Henan |
2,620 |
365.3 |
-20 |
-2.8 |
||
Zhangjiagang,Jiangsu |
2,680 |
373.6 |
-30 |
-4.2 |
||
Jinan,Shandong |
2,660 |
370.8 |
0 |
0.0 |
||
Average |
2,659 |
370.7 |
-14 |
-1.9 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, Chinese scrap prices have moved down as stock replenishment by steelmakers has not been as good as market players had been expecting. Following previous rises in scrap prices, most sellers have chosen to sell at lower prices and to bring in cash ahead of the long National Day holiday (September 29-October 6). Both supply and demand in the scrap market has been weak, while decreasing ferrous metal futures prices have weakened the support for scrap prices. Cautious sentiments have prevailed among market players, exerting a negative impact on the scrap market. It is expected that scrap prices in the Chinese domestic market will fluctuate within a limited range in the coming weeks.
The latest ex-Japan HS scrap tradable price has settled at $380-385/mt CFR, down by $5/mt over the past week.
$1 = RMB 7.1717
