Following a rebound in ferrous metal futures prices and improved market sentiment, domestic scrap prices in the Chinese market have mostly risen this week. However, in some regions of China the downtrend in scrap prices has continued, with China’s largest private steelmaker-Shagang Group cutting its scrap purchase prices further by RMB 100/mt as of June 23, exerting a negative impact on sentiments. Overall, supplies of scrap in China have decreased lately amid dwindling inventory levels, which is expected to provide a certain degree of support to scrap suppliers in the future. During the past week, the workable levels for import scrap have increased by around $10/mt to around $440/mt CFR. Following two ex-Europe scrap bookings to China last week, no new import scrap transactions have been heard so far. Rare offers for ex-Japan HS scrap have been heard at $480/mt CFR, though without any buying interest.
Average domestic HMS scrap prices in China are at RMB 2,936/mt ex-warehouse, moving up by RMB 56/mt compared to June 22, 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 |
3,060 |
457.2 |
190 |
27.9 |
|
Liupanshui,Guizhou |
2,740 |
409.4 |
-50 |
-8.0 |
||
|
Nanchang,Jiangxi |
2,915 |
435.5 |
-75 |
-11.7 |
||
|
Handan,Hebei |
2,990 |
446.7 |
125 |
18.2 |
||
|
Anyang,Henan |
2,935 |
438.5 |
145 |
21.2 |
||
|
Zhangjiagang,Jiangsu |
2,975 |
444.5 |
-15 |
-2.8 |
||
|
Jinan,Shandong |
2,935 |
438.5 |
75 |
10.7 |
||
|
Average |
2,936 |
438.6 |
56 |
7.9 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
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$1 = RMB 6.7035