Average scrap prices in the Chinese domestic market have indicated slight rises compared to the prices recorded on May 22 mainly amid better sentiments, while the market fundamentals have not changed much.
Average domestic HMS scrap prices in China are at RMB 2,545/mt ex-warehouse, rising by RMB 11/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 |
2,645 |
372.0 |
40 |
5.5 |
|
Liupanshui, Guizhou |
2,510 |
353.0 |
0 |
-0.1 |
||
|
Nanchang, Jiangxi |
2,490 |
350.2 |
10 |
1.3 |
||
|
Handan, Hebei |
2,605 |
366.4 |
0 |
-0.2 |
||
|
Anyang, Henan |
2,480 |
348.8 |
-10 |
-1.6 |
||
|
Zhangjiagang, Jiangsu |
2,595 |
365.0 |
30 |
4.1 |
||
|
Jinan, Shandong |
2,490 |
350.2 |
10 |
1.3 |
||
|
Average |
2,545 |
357.9 |
11 |
1.5 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese market have edged up slightly amid the gradually improved demand from downstream users. Recently, China issued several stimulus policies for the real estate sector. In particular, two major first-tier cities, Shanghai and Shenzhen, lifted restriction clauses for housing purchases, aiming to bolster weak real estate sales. Inventory of scrap held by most steelmakers has been at relatively low levels, which will provide some support for prices in the near future. It is expected that scrap prices in the Chinese domestic market will likely move sideways in the coming week.
The latest ex-Japan HS scrap tradable prices have been at $355-360/mt CFR, versus $355/mt CFR last week, while offers are still not below $370/mt CFR.
$1 = RMB 7.1106