Average scrap prices in the Chinese domestic market have edged down further compared to the prices recorded on June 5 due to slower steel demand.
Average domestic HMS scrap prices in China are at RMB 2,501/mt ex-warehouse, decreasing by RMB 14/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 |
367.6 |
0 |
-0.3 |
|
Liupanshui, Guizhou |
2,470 |
347.2 |
0 |
-0.3 |
||
|
Nanchang, Jiangxi |
2,430 |
341.6 |
-40 |
-5.9 |
||
|
Handan, Hebei |
2,575 |
362.0 |
0 |
-0.3 |
||
|
Anyang, Henan |
2,450 |
344.4 |
0 |
-0.3 |
||
|
Zhangjiagang, Jiangsu |
2,515 |
353.5 |
-40 |
-5.9 |
||
|
Jinan, Shandong |
2,455 |
345.1 |
-15 |
-2.4 |
||
|
Average |
2,501 |
351.6 |
-14 |
-2.2 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
On June 6, Jiangsu-based Shagang Group announced a RMB 30-50/mt ($4.2-7/mt) decrease in its scrap purchase price, signaling continuous cautious sentiments as regards the future prospects for the scrap market and negatively affecting prices.
Scrap supplies arriving at steelmakers have decreased gradually in the given week, while the Dragon Boat Festival exerted a negative impact on the demand for scrap. News of a reduction in crude steel output in 2024 has bolstered scrap prices to a certain degree, while the relatively high levels of scrap prices mean further big rises may not be seen in the near future. It is thought that scrap prices in the Chinese market will likely fluctuate within a limited range in the coming week.
The latest tradable ex-Japan HS scrap prices were at $350/mt CFR, inching down by $2.5/mt on average over the past week, while offers are at $360-365/mt CFR.
$1 = RMB 7.1133