Average scrap prices in the Chinese domestic market have seen further rises week on week, following the increases announced by Shagang, and amid improved activity and some slight rises in steel prices.
Average domestic HMS scrap prices in China are at RMB 2,724/mt ex-warehouse, increasing by RMB 24/mt on average compared to previous week, 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 scrap |
> 6 mm |
Tianjin |
2,770 |
391.4 |
30 |
5.3 |
|
Liupanshui,Guizhou |
2,700 |
381.5 |
30 |
5.3 |
||
|
Nanchang,Jiangxi |
2,660 |
375.9 |
30 |
5.3 |
||
|
Handan,Hebei |
2,760 |
390.0 |
20 |
3.9 |
||
|
Anyang,Henan |
2,650 |
374.5 |
20 |
3.9 |
||
|
Zhangjiagang,Jiangsu |
2,770 |
391.4 |
40 |
6.7 |
||
|
Jinan,Shandong |
2,760 |
390.0 |
0 |
1.1 |
||
|
Average |
2,724 |
384.9 |
24 |
4.5 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
Major Chinese steelmaker Shagang Group announced another rise of RMB 50/mt ($7/mt) in its scrap prices on December 30.
During the given week, scrap prices in the Chinese domestic market have moved up further amid improved transaction activities and the positive impact from increasing iron ore prices. Some steelmakers issued their stock replenishment plans for the winter, which will exert a positive impact on scrap prices. However, increasing scrap prices have reduced steelmakers’ profitability, which will weaken the support for prices to rise further. It is expected that scrap prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
The latest tradable level for ex-Japan HS has been at $385-390/mt CFR.
$1 = RMB 7.1002