Average scrap prices in the Chinese domestic market have continued their downtrend compared to the previous week and the pace of the decline has accelerated amid the slowdown of demand.
Average domestic HMS scrap prices in China are at RMB 2,596/mt ex-warehouse, decreasing by RMB 91/mt on average compared to the previous week, according to SteelOrbis’ information, while last week the week-on-week loss was just RMB 23/mt.
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 |
2,670 |
376.3 |
-90 |
-12.3 |
|
Liupanshui,Guizhou |
2,605 |
367.1 |
-85 |
-11.6 |
||
|
Nanchang,Jiangxi |
2,565 |
361.5 |
-95 |
-13.0 |
||
|
Handan,Hebei |
2,680 |
377.7 |
-70 |
-9.5 |
||
|
Anyang,Henan |
2,510 |
353.7 |
-130 |
-18.0 |
||
|
Zhangjiagang,Jiangsu |
2,620 |
369.2 |
-90 |
-12.3 |
||
|
Jinan,Shandong |
2,520 |
355.1 |
-80 |
-10.9 |
||
|
Average |
2,596 |
365.8 |
-91 |
-12.5 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have continued their downtrend, influenced by Jiangsu-based Shagang Group, China’s largest private steelmaker, cutting its scrap purchase price by RMB 30/mt ($4.2/mt) on March 9 and by RMB 70/mt ($10/mt) on March 12. Bearish sentiments have prevailed among market players, exerting a negative impact on scrap prices, as demand has indicated a further slight weakening, while supply has been on the high side. It is expected that scrap prices in the Chinese market will continue their downtrend in the coming week.
The latest tradable level for ex-Japan HS scrap has declined from $375/mt CFR last week to $360-365/mt CFR. And even though offers from Japan are also at lower levels - $380-385/mt CFR is possible in negotiations - the gap between offers and bids has remained wide.
$1 = RMB 7.093