Although scrap prices in the Chinese domestic market have indicated various trends, depending on the regions, average levels have edged up slightly this week. During the given week, scrap market players in China have gradually resumed their operations. Nevertheless, the shortage of labor resources which has been seen after the Lunar New Year holiday has continued to exert pressure on trading activity. Given relatively low scrap inventories, steel mills are likewise expected to return to the market to meet their needs, thereby bolstering scrap prices in the future. Consequently, scrap players are more optimistic these days. However, in some regions, demand for scrap has not recovered to the expected levels, exerting pressure on scrap suppliers.
Average domestic HMS scrap prices in China are at RMB 2,818/mt ex-warehouse, edging up by RMB 14/mt on average compared to February 1, 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 |
2,855 |
420.0 |
-40 |
-8.2 |
Liupanshui,Guizhou |
2,730 |
401.6 |
50 |
5.2 |
||
Nanchang,Jiangxi |
2,790 |
410.5 |
0 |
-2.2 |
||
Handan,Hebei |
2,800 |
411.9 |
-10 |
-3.7 |
||
Anyang,Henan |
2,810 |
413.4 |
30 |
2.2 |
||
Zhangjiagang,Jiangsu |
2,935 |
431.8 |
70 |
8.0 |
||
Jinan,Shandong |
2,805 |
412.7 |
0 |
-2.3 |
||
Average |
2,818 |
414.6 |
14 |
-0.2 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
Given the conditions outlined above, the workable prices for import scrap in China have increased by $5/mt at least to $420/mt CFR, though the price levels have remained lower than the levels which could be attractive for foreign suppliers. In particular, as SteelOrbis reported earlier, the latest bids for ex-Japan HS scrap from South Korean customers have been voiced at $437/mt FOB.
$1 = RMB 6.7752