Average scrap prices in the Chinese domestic market have moved on an uptrend during the past week, following some increases in demand and tight supply.
Average domestic HMS scrap prices in China are at RMB 2,673/mt ex-warehouse, increasing by RMB 41/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 |
2,740 |
382.0 |
0 |
1.4 |
|
Liupanshui,Guizhou |
2,605 |
363.2 |
30 |
5.5 |
||
|
Nanchang,Jiangxi |
2,625 |
366.0 |
30 |
5.5 |
||
|
Handan,Hebei |
2,730 |
380.6 |
10 |
2.8 |
||
|
Anyang,Henan |
2,640 |
368.0 |
20 |
4.1 |
||
|
Zhangjiagang,Jiangsu |
2,710 |
377.8 |
60 |
9.7 |
||
|
Jinan,Shandong |
2,660 |
370.8 |
140 |
20.8 |
||
|
Average |
2,673 |
372.6 |
41 |
7.1 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices have indicated an uptrend with Jiangsu-based Shagang Group, China’s largest private steelmaker, announcing a rise of RMB 50/mt ($7/mt) in its scrap purchase price as of September 19, which bolstered market sentiments. At the same time, steelmakers have been willing to replenish stocks since the long National Day holiday (September 29-October 6) is approaching, which has also provided support for scrap prices. Moreover, supply of scrap has been tight, positively affecting prices. It is expected that scrap prices in the Chinese market will continue their uptrend in the coming week.
The latest ex-Japan HS scrap tradable price has risen by $5/mt over the past week to $385-390/mt CFR, while offers are at $400/mt CFR.
$1 = RMB 7.1894