Average scrap prices in the Chinese domestic market have edged up slightly in the past week amid the better situation in the steel market. But in the import segment, trading is still muted even despite possible discounts from Japanese suppliers.
Average domestic HMS scrap prices in China are at RMB 2,594/mt ex-warehouse, increasing by RMB 9/mt on average compared to the 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 |
2,635 |
367.1 |
0 |
0.0 |
Liupanshui,Guizhou |
2,555 |
355.9 |
0 |
0.0 |
||
Nanchang,Jiangxi |
2,555 |
355.9 |
25 |
3.5 |
||
Handan,Hebei |
2,640 |
367.8 |
0 |
0.0 |
||
Anyang,Henan |
2,520 |
351.1 |
10 |
1.4 |
||
Zhangjiagang,Jiangsu |
2,625 |
365.7 |
0 |
0.0 |
||
Jinan,Shandong |
2,630 |
366.4 |
30 |
4.2 |
||
Average |
2,594 |
361.4 |
9 |
1.3 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, import iron ore prices have moved up sharply, exerting a positive impact on the scrap market. At the same time, steelmakers’ profitability has improved to a certain degree. The increasing ferrous metal futures prices have positively affected market sentiments. However, since the scrap flow to mills is still healthy, price gains have been limited. It is expected that scrap prices in the Chinese domestic market will likely move sideways in the coming week.
The latest ex-Japan HS scrap offer prices have been heard at JPY 50,000/mt ($331/mt), CFR, moving down by JPY 500/mt ($3.3/mt) compared to November 1.
The latest ex-Japan HS scrap offers price have declined over the past week, to $390-395/mt CFR from $400/mt CFR and above earlier. But the tradable level has remained at not above $370/mt CFR, making concluding deals difficult.
$1 = RMB 7.1773
