Average scrap prices in the Chinese domestic market have moved down compared to the previous week amid the slack demand.
Average domestic HMS scrap prices in China are at RMB 2,577/mt ex-warehouse, moving down by RMB 32/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 |
2,640 |
367.2 |
-40 |
-4.7 |
|
Liupanshui,Guizhou |
2,470 |
343.6 |
20 |
3.5 |
||
|
Nanchang,Jiangxi |
2,555 |
355.4 |
0 |
0.8 |
||
|
Handan,Hebei |
2,620 |
364.4 |
-30 |
-3.4 |
||
|
Anyang,Henan |
2,585 |
359.6 |
-45 |
-5.4 |
||
|
Zhangjiagang,Jiangsu |
2,625 |
365.1 |
-45 |
-5.4 |
||
|
Jinan,Shandong |
2,545 |
354.0 |
-85 |
-11.0 |
||
|
Average |
2,577 |
358.5 |
-32 |
-3.7 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, demand for scrap has been slack, exerting a negative impact on prices. Meanwhile, there were limited scrap resources arriving at spot market, resulting in a decreasing trend in inventory level, which bolstered scrap prices to a certain degree. At the same time, the scrap generation hasn’t seen significant rises, providing certain support to the scrap market. Recently, the ups and downs in finished steel prices contributed to the lack of confidence among market players in scrap market. It is thought that scrap prices in the Chinese domestic market will likely move sideways in the coming week.
The latest tradable level for ex-Japan HS scrap was $380/mt CFR, slightly down by $5/mt from last week. However, offers are at $400-420/mt CFR as the lowest and since the scrap generation in Japan is slower due to the summer and local prices have increased slightly, it is unlikely that Chinese customers will get lower prices from Japan and resume imports.
$1 = RMB 7.1765