Pressure on scrap prices in China eases, import offers-bids mismatch remains

Wednesday, 24 November 2021 17:13:08 (GMT+3)   |   Istanbul
       

Certain gains in ferrous metal futures prices and subsequently in spot prices in China this week have positively affected sentiments in the Chinese steel market, providing significant support for scrap prices among other issues. Although positive changes have not been experienced widely, some Chinese steelmakers have been encouraged to increase their purchase prices for scrap.

On balance, average domestic HMS scrap prices in China are at RMB 3,076/mt ($481.4/mt) ex-warehouse, decreasing by RMB 32/mt compared to November 17, according to SteelOrbis’ information.

Average scrap prices in China’s main markets are presented in the following table. 

Product name

Specification

Origin

Price
(RMB/mt)

Price
($/mt)

Weekly change
(RMB/mt)

Weekly change
($/mt)

HMS

scrap

> 6 mm

Tianjin

3,160

494.3

+140

+21.8

Liupanshui, Guizhou

3,050

477.1

-60

-9.5

Nanchang, Jiangxi

3,050

477.1

-230

-36.1

Handan, Hebei

3,060

478.6

+60

+9.3

Anyang, Henan

3,110

486.5

-80

-12.6

Zhangjiagang, Jiangsu

3,085

482.6

-105

-16.5

Jinan, Shandong

3,020

472.4

+50

+7.7

Average

3,076

481.2

-32

-5.1

Notwithstanding that bids for import scrap from Chinese customers have risen by around $10-15/mt within the past week to $430/mt CFR, import activity in China is hardly expected to rebound soon. A considerable gap between local prices in China and prices in other regions is still seriously hampering any import activity in China. In particular, following the latest transactions for HS scrap in Japan, Japanese suppliers are unlikely to export below at $500/mt CFR.

$1 = RMB 6.3903


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