Scrap prices in the Chinese domestic market have remained mostly stable in the past week, though with some downtrend seen in Shandong Province. With the approaching Lunar New Year holiday, Chinese traders and steelmakers have started to leave the market, and so demand for scrap has been reduced to meeting urgent needs. Moreover, the worsening of the Covid-19 pandemic situation in many regions of China and strict controlling measures have also negatively affected the transportation and trading of scrap. In the import segment, activity has remained constrained by the bullishness of leading exporters due to higher prices in alternative destinations. Specifically, while Japanese scrap exporters have been receiving bids for HS scrap from South Korean customers at $525/mt FOB, the workable prices in China are at $525/mt CFR at the highest.
In particular, average domestic HMS scrap prices in China have decreased to RMB 3,616/mt ($570.2/mt) ex-warehouse, down by RMB 3/mt compared to January 19, 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 |
3,710 |
585.0 |
0 |
+0.9 |
|
Liupanshui, Guizhou |
3,450 |
544.0 |
0 |
+0.9 |
||
|
Nanchang, Jiangxi |
3,550 |
559.8 |
0 |
+0.9 |
||
|
Handan, Hebei |
3,735 |
588.9 |
0 |
+0.9 |
||
|
Anyang, Henan |
3,615 |
570.0 |
0 |
+0.9 |
||
|
Zhangjiagang, Jiangsu |
3,605 |
568.4 |
0 |
+0.9 |
||
|
Jinan, Shandong |
3,650 |
575.5 |
-20 |
-2.2 |
||
|
Average |
3,616 |
570.2 |
-3 |
+0.4 |
$1 = RMB 6.3246