Average scrap prices in the Chinese domestic market have edged up compared to the previous week, supported by somewhat better steel demand, though further increases are not certain.
Average domestic HMS scrap prices in China are at RMB 2,484/mt ex-warehouse, increasing by RMB 20/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 |
2,565 |
361.5 |
20 |
2.8 |
|
Liupanshui,Guizhou |
2,370 |
334.0 |
20 |
2.8 |
||
|
Nanchang,Jiangxi |
2,480 |
349.5 |
60 |
8.5 |
||
|
Handan,Hebei |
2,555 |
360.1 |
10 |
1.4 |
||
|
Anyang,Henan |
2,410 |
339.6 |
20 |
2.8 |
||
|
Zhangjiagang,Jiangsu |
2,555 |
360.1 |
10 |
1.4 |
||
|
Jinan,Shandong |
2,450 |
345.3 |
0 |
0.0 |
||
|
Average |
2,484 |
350.0 |
20 |
2.8 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have edged up slightly as scrap supplies arriving at steelmakers have decreased significantly. Some steelmakers who were short of scrap have raised their purchases prices for scrap. At the same time, ferrous metal futures prices have moved on an increasing trend in the given week, positively affecting the scrap market. However, steelmakers’ profitability has been at relatively low levels, exerting a negative impact on their willingness to buy scrap in large amounts. It is thought that scrap prices in the Chinese market will see further rises in the coming week.
The latest ex-Japan HS tradable prices have been heard at $350/mt CFR, versus $345-350/mt CFR last week, while offers are still around $25/mt higher.
$1 = RMB 7.0959