Average scrap prices in the Chinese domestic market have moved on an overall downtrend compared to the prices recorded on May 29 amid the weakness of the steel market, falling iron ore prices, and the bearish outlook for June. However, it is unlikely that scrap prices will fall rapidly as supply is somewhat reduced.
Average domestic HMS scrap prices in China are at RMB 2,515/mt ex-warehouse, decreasing by RMB 30/mt on average compared to the 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 |
2,615 |
367.9 |
-30 |
-4.1 |
|
Liupanshui,Guizhou |
2,470 |
347.5 |
-40 |
-5.5 |
||
|
Nanchang,Jiangxi |
2,470 |
347.5 |
-20 |
-2.7 |
||
|
Handan,Hebei |
2,575 |
362.3 |
-30 |
-4.1 |
||
|
Anyang,Henan |
2,450 |
344.7 |
-30 |
-4.1 |
||
|
Zhangjiagang,Jiangsu |
2,555 |
359.5 |
-40 |
-5.5 |
||
|
Jinan,Shandong |
2,470 |
347.5 |
-20 |
-2.7 |
||
|
Average |
2,515 |
353.8 |
-30 |
-4.1 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
On June 4, Jiangsu-based Shagang Group announced a RMB 30/mt ($4.2/mt) decline in its scrap purchase price, signaling cautious sentiments as regards the future prospects for the scrap market, which exerted a negative impact on prices. Though China issued several stimulus policies, the approaching offseason for construction activities has negatively affected market sentiments. At the same time, import iron ore prices have indicated big declines, weakening market players’ confidence. It is thought that scrap prices in the Chinese domestic market will fluctuate within a limited range amid certain shortages on the supply side.
The latest ex-Japan HS scrap tradable prices have been at $350-355/mt CFR, losing $5/mt over the past week, while offers have also declined slightly, to $365/mt CFR.
$1 = RMB 7.1097