The emerging signs of a recovery stemming from a rebound in ferrous metal futures prices have bolstered domestic scrap prices in China. However, Chinese steelmakers have continued to prefer local scrap instead of import material due to the more attractive price. “Now BPI [basic pig iron] and scrap will very definitely not come into China. The global prices do not work for China,” an official at a Chinese steel mill commented with regard to the current situation. Even taking into account that the workable scrap prices for Chinese steelmakers have increased by around $30/mt to $450-460/mt CFR, Japan-based scrap suppliers prefer to sell material locally, enjoying higher prices. No fresh offers and deals have been heard this week.
Despite some positive changes in sentiments over the past week, the demand for scrap and as well as for finished steel is expected to be sluggish in the coming cold winter season, which may again negatively affect prices.
On balance, this week average domestic HMS scrap prices in China are at RMB 3,265/m ($511.8/mt) ex-warehouse, increasing by RMB 189/mt compared to November 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 |
3,330 |
522.0 |
170 |
27.7 |
|
Liupanshui,Guizhou |
3,300 |
517.3 |
250 |
40.2 |
||
|
Nanchang,Jiangxi |
3,220 |
504.8 |
170 |
27.7 |
||
|
Handan,Hebei |
3,280 |
514.2 |
220 |
35.5 |
||
|
Anyang,Henan |
3,330 |
522.0 |
220 |
35.6 |
||
|
Zhangjiagang,Jiangsu |
3,175 |
497.7 |
90 |
15.2 |
||
|
Jinan,Shandong |
3,220 |
504.8 |
200 |
32.4 |
||
|
Average |
3,265 |
511.8 |
189 |
30.6 |
$1 = RMB 6.3693