This week, scrap prices in the Chinese domestic market have moved down due to the prevailing bearish sentiments among market players. The decision of Shagang Group to cut its scrap purchase prices by RMB 50/mt as of June 14 has exerted negative pressure on the future price trend. Meanwhile, in the import segment, a Chinese customer is said to have succeeded in booking material at its desired level. Specifically, a small-volume lot of ex-Japan HS scrap is said to have been booked at $510/mt CFR, down $15-20/mt from the widespread offers valid a week ago. Subsequently, the workable prices for import scrap in China have declined even further, to $500/mt CFR and below.
Average domestic HMS scrap prices in China are at RMB 3,374/mt ex-warehouse, edging down by RMB 36/mt compared to June 8, 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 |
3,470 |
514.2 |
-30 |
-10.9 |
Liupanshui, Guizhou |
3,270 |
484.6 |
-10 |
-7.5 |
||
Nanchang, Jiangxi |
3,390 |
502.4 |
-20 |
-9.3 |
||
Handan, Hebei |
3,440 |
509.8 |
-40 |
-12.3 |
||
Anyang, Henan |
3,405 |
504.6 |
-70 |
-16.8 |
||
Zhangjiagang, Jiangsu |
3,350 |
496.4 |
-30 |
-10.7 |
||
Jinan, Shandong |
3,290 |
487.6 |
-50 |
-13.6 |
||
Average |
3,374 |
499.9 |
-36 |
-11.6 |
||
Note: Prices include 3 percent VAT as of March 1 2022. |
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$1 = RMB 6.7518