Average scrap prices in the Chinese domestic market have fluctuated within a limited range in the past week as steel mills are cautious about increasing inventories even ahead of the winter.
Average domestic HMS scrap prices in China are at RMB 2,616/mt ex-warehouse, increasing by RMB 6/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 (RMB/mt) |
Price ($/mt) |
Weekly change |
Weekly change |
|
HMS scrap |
> 6 mm |
Tianjin |
2,690 |
378.2 |
+30 |
+4.2 |
|
Liupanshui, Guizhou |
2,605 |
366.2 |
0 |
0.0 |
||
|
Nanchang, Jiangxi |
2,605 |
366.2 |
+30 |
+4.2 |
||
|
Handan, Hebei |
2,640 |
371.2 |
0 |
0.0 |
||
|
Anyang, Henan |
2,555 |
359.2 |
0 |
0.0 |
||
|
Zhangjiagang, Jiangsu |
2,640 |
371.2 |
-10 |
-1.4 |
||
|
Jinan, Shandong |
2,575 |
362.0 |
-10 |
-1.4 |
||
|
Average |
2,616 |
367.7 |
+6 |
+0.8 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, steel scrap prices have fluctuated within a limited range as most steelmakers have maintained a wait-and-see stance as regards concluding purchases of scrap. Some stock replenishment has been seen, while the shrinking profitability on the steelmakers’ side has made them cautious as regards scrap purchases. Inventories of scrap are at relatively low levels, which may bolster prices to a certain degree. However, some sources indicate that they may reduce stocks, which would likely exert a negative impact on scrap prices. It is thought that scrap prices in the Chinese domestic market will move sideways or go down slightly in the coming week.
The latest tradable level for ex-Japan HS has remained at $375/mt CFR, even though offers are up by $5-10/mt to $405-410/mt CFR.
$1 = RMB 7.114