During the week ending October 20, local steel scrap prices in the Chinese market have mostly indicated a declining trend, though remaining stable in Tianjin, Guizhou and Hebei, while transaction activity in the overall market has been at decent levels. Average scrap prices in China's main markets are presented in the table below.
During the given week, steelmakers in northern China have stepped up their scrap purchases, providing support for the stable movement of scrap prices in the region. On the other hand, although scrap supplies have not been so plentiful in eastern China, steelmakers in the region have decreased their purchase prices for scrap against the backdrop of the soft trend of finished steel prices. Market participants have mentioned that some Chinese steelmakers are planning to cut production capacity utilization due to high inventories and weak prices, which will exert a negative impact on scrap prices. However, there are not sufficient supplies available in the scrap market. It is expected that scrap prices in the Chinese domestic market will likely move sideways or indicate a slight downtrend in the coming week.
Product Name |
Spec. |
Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly Change (RMB/mt) |
HMS scrap |
> 6 mm |
Tianjin |
1330 |
209 |
0 |
Liupanshui |
1280 |
202 |
0 |
||
Zhangjiagang |
1280 |
202 |
↓20 |
||
Handan |
1300 |
205 |
0 |
||
Nanchang |
1280 |
202 |
↓20 |
||
Anyang |
1250 |
197 |
↓30 |
||
Jinan |
1280 |
202 |
↓20 |
||
Average |
1286 |
202 |
↓13 |
All prices include 17 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.35