During the week ending November 3, local steel scrap prices in the Chinese market have mostly indicated a downward trend, though moving sideways in Liupanshui and Zhangjiagang, while transaction activity in the overall market has been at low levels. Average scrap prices in China’s main markets are presented in the following table.
During the given week, other domestic steelmakers have followed the example set by Shagang, lowering their purchase prices for scrap. Meanwhile, iron ore prices have softened as the peak season for finished steel is over. Some scrap traders have accepted lower prices now in order to decrease their inventories and reduce their exposure to further declines in scrap prices in the longer term. It is thought that scrap prices in the Chinese domestic market will likely continue to move down in the coming week as steelmakers will continue to seek to pay lower prices for raw materials, while some of them will carry out maintenance work in the coming period.
Product Name |
Spec. |
Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly Change (RMB/mt) |
HMS scrap |
> 6 mm |
Tianjin |
1,290 |
203 |
↓40 |
Liupanshui |
1,280 |
202 |
0 |
||
Zhangjiagang |
1,240 |
195 |
0 |
||
Handan |
1,260 |
198 |
↓40 |
||
Nanchang |
1,260 |
198 |
↓20 |
||
Anyang |
1,240 |
195 |
↓10 |
||
Jinan |
1,260 |
198 |
↓20 |
||
Average |
1,261 |
199 |
↓19 |
All prices include 17 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.35