Scrap prices in the Chinese domestic market have moved up sharply this week following the improvement of sentiments in the steel segment, coupled with the rebound in futures prices. In particular, as of August 1, Jiangsu-based Shagang Group, China’s largest private steelmaker raised its scrap purchase prices by RMB 100/mt ($15/mt), ending the long-standing downtrend of scrap purchase prices. Specifically, since July 4 this year, Shagang Group had decreased its scrap purchase price by RMB 730/mt ($108/mt) by the time of the latest rise. Overall, market players expect to see better demand from late August due to the end of off-season, which will positively impact scrap prices. Meanwhile, on the other hand, import scrap offers have decreased week on week. Accordingly, the latest ex-Japan HS scrap offer prices have been heard at JPY 51,000/mt ($383/mt) CFR, down JPY 1,000/mt week on week, though, given the currency fluctuations, offers in dollar-equivalent prices have remained almost stable compared to $381/mt CFR last week, with no fresh deals done by the time of publication.
On balance, average domestic HMS scrap prices in China are at RMB 2,608/mt ex-warehouse, moving up by RMB 201/mt compared to July 27, 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 |
2,700 |
400.2 |
+270 |
+40.1 |
|
Liupanshui, Guizhou |
2,565 |
380.2 |
+135 |
+20.1 |
||
|
Nanchang, Jiangxi |
2,520 |
373.6 |
+150 |
+22.3 |
||
|
Handan, Hebei |
2,680 |
397.3 |
+240 |
+35.7 |
||
|
Anyang, Henan |
2,600 |
385.4 |
+260 |
+38.6 |
||
|
Zhangjiagang, Jiangsu |
2,565 |
380.2 |
+155 |
+23.1 |
||
|
Jinan, Shandong |
2,625 |
389.1 |
+195 |
+29.0 |
||
|
Average |
2,608 |
386.6 |
+201 |
+29.9 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
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$1 = RMB 6.7813