Average scrap prices in the Chinese domestic market have moved down further compared to the previous week amid the decreases in coke and iron ore prices, still limited demand and bearish expectations.
Average domestic HMS scrap prices in China are at RMB 2,463/mt ex-warehouse, moving down by RMB 30/mt on average compared to May 24, 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 |
2,545 |
359.4 |
-30 |
-6.8 |
|
Liupanshui,Guizhou |
2,350 |
331.8 |
-80 |
-13.7 |
||
|
Nanchang,Jiangxi |
2,470 |
348.8 |
-10 |
-3.9 |
||
|
Handan,Hebei |
2,510 |
354.4 |
-20 |
-5.3 |
||
|
Anyang,Henan |
2,500 |
353.0 |
-20 |
-5.3 |
||
|
Zhangjiagang,Jiangsu |
2,490 |
351.6 |
-30 |
-6.7 |
||
|
Jinan,Shandong |
2,375 |
335.4 |
-20 |
-5.2 |
||
|
Average |
2,463 |
347.8 |
-30 |
-6.7 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, the poor performance of the finished steel market has exerted a negative impact on scrap consumption. Meanwhile, the decreases in finished steel prices have weakened the support for scrap prices. At the same time, market players have expected sluggish demand to continue in the steel market, which has also negatively affected the expectations for scrap. Moreover, coke prices have continued to decrease, resulting in cautious sentiments as regards the future prospects for the raw materials market.
Following the temporary rebound in ferrous metal futures prices since last Friday, majör Chinese steelmaker Shagang Group raised its scrap prices by $4.2/mt on May 30. However, ferrous metal futures prices have edged down again since then. It is thought that scrap prices in the Chinese domestic market may edge down in the coming week.
The latest ex-Japan HS scrap reference price has been heard at JPY 50,000/mt ($358.4/mt), CFR, decreasing by JPY 500/mt and $7.6/mt compared to May 24.
$1 = RMB 7.0821