Average scrap prices in the Chinese domestic market have moved on an uptrend compared to the previous week amid the rebounding trends in ferrous metal futures prices and iron ore prices. However, the future trend is still unclear and market sources are cautious, seeing some lower futures prices in China today, June 7.
Average domestic HMS scrap prices in China are at RMB 2,531/mt ex-warehouse, moving up by RMB 68/mt on average compared to May 31, 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 |
2,605 |
366.5 |
+60 |
+7.1 |
|
Liupanshui, Guizhou |
2,380 |
334.8 |
+30 |
+3.0 |
||
|
Nanchang, Jiangxi |
2,520 |
354.5 |
+50 |
+5.8 |
||
|
Handan, Hebei |
2,575 |
362.3 |
+65 |
+7.8 |
||
|
Anyang, Henan |
2,530 |
355.9 |
+30 |
+2.9 |
||
|
Zhangjiagang, Jiangsu |
2,595 |
365.1 |
+105 |
+13.5 |
||
|
Jinan, Shandong |
2,510 |
353.1 |
+135 |
+17.8 |
||
|
Average |
2,531 |
356.0 |
+68 |
+8.3 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, ferrous metal futures prices have indicated continuous rises, exerting a positive impact on sentiments in the scrap market. At the same time, the delivery of scrap has been insufficient to support daily consumption on the steelmakers’ side, resulting in the decreasing trend of inventory levels.
Some steelmakers have raised their purchase prices for scrap, aiming to attract more supply: for instance, Jiangsu-based Shagang Group announced two increases on June 2 and June 6, by RMB 50/mt ($7/mt) each time. However, market players are also worried about the coming rainy season and the traditional offseason. It is expected that scrap prices in the Chinese domestic market will edge up in the coming week.
The tradable level for HS scrap has increased slightly, to $370/mt CFR, up by around $10/mt over the past week, though this level is still considered too low by Japanese suppliers.
$1 = RMB 7.1196