Supply shortages have bolstered steel scrap prices in China over the past week. In line with local scrap prices, steel mills have increased bids for import material to bolster their inventories.
Average domestic HMS scrap prices in China are at RMB 3,652/mt ($570/mt) ex-warehouse, increasing by RMB 65/mt compared to June 9, 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 |
3,785 |
590.8 |
25 |
2.4 |
|
Liupanshui,Guizhou |
3,525 |
550.2 |
55 |
7.2 |
||
|
Nanchang,Jiangxi |
3,500 |
546.3 |
0 |
-1.4 |
||
|
Handan,Hebei |
3,840 |
599.3 |
195 |
29.0 |
||
|
Anyang,Henan |
3,855 |
601.7 |
55 |
7.1 |
||
|
Zhangjiagang,Jiangsu |
3,650 |
569.7 |
60 |
8.0 |
||
|
Jinan,Shandong |
3,410 |
532.2 |
65 |
8.8 |
||
|
Average |
3,652 |
570.0 |
65 |
8.7 |
During the given week, scrap has been in short supply in some regions amid environmental protection inspections, and so steelmakers have had to raise their purchase prices for scrap to maintain reasonable inventory levels. The rainy season and high temperatures in June will negatively impact supply and provide a certain degree of support for prices. It is thought that steel scrap prices may edge up in the coming week.
The main private steel mill in China, Shagang Group, has announced a further increase in scrap purchase prices - by RMB 80/mt ($12.5/mt) to RMB 3,830/mt ($598/mt) delivered for heavy scrap.
Bids for import HS scrap have also improved over the past week, reaching $530-540/mt CFR. Some sources said that bids could be seen at $520/mt CFR, but, taking into account increased competition for HS scrap in Asia, $530-540/mt CFR would be the lowest possible level from Japanese suppliers at the moment. The majority of exporters have been officially offering at $560-570/mt CFR China.
$1 = RMB 6.4078