Average scrap prices in the Chinese domestic market have moved on a slight uptrend compared to the previous week amid the rebounding trend of ferrous metal futures prices and policymakers issuing stimulus policies.
Average domestic HMS scrap prices in China are at RMB 2,533/mt ex-warehouse, edging up slightly by RMB 2/mt compared to June 7, 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 |
2,595 |
362.9 |
-10 |
-3.6 |
|
Liupanshui, Guizhou |
2,430 |
339.9 |
+50 |
+5.0 |
||
|
Nanchang, Jiangxi |
2,520 |
352.4 |
0 |
-2.1 |
||
|
Handan, Hebei |
2,565 |
358.7 |
-10 |
-3.5 |
||
|
Anyang, Henan |
2,555 |
357.3 |
+25 |
+1.4 |
||
|
Zhangjiagang, Jiangsu |
2,595 |
362.9 |
0 |
-2.1 |
||
|
Jinan, Shandong |
2,470 |
345.5 |
-40 |
-7.7 |
||
|
Average |
2,533 |
354.2 |
+2 |
-1.8 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, inventory levels of scrap have decreased to only one third of the levels recorded in the same period last year, bolstering scrap prices to some extent. At the same time, scrap supplies arriving at steelmakers have not been as good as market expected, also positively affecting its prices.
Meanwhile, major Chinese steelmaker Jiangsu-based Shagang Group has announced another rise in its scrap purchase price by RMB 50/mt ($7/mt) on June 14, exerting a positive impact on the scrap market. However, as the rainy season and hot summer weather are approaching, demand for scrap may slacken. It is expected that scrap prices may fluctuate within a limited range in the coming week.
The tradable level for imported HS scrap in China has moved up by another $10/mt to $380/mt CFR, which, however, is still too low for most Japanese suppliers. In particular, late last week they sold HS scrap to the South Korean steelmaker POSCO at slightly above $400/mt CFR.
$1 = RMB 7.1566