Average scrap prices in the Chinese domestic market have moved down compared to the previous week, while tradable prices for imports have also retreated, being too low for suppliers.
Average domestic HMS scrap prices in China are at RMB 2,687/mt ex-warehouse, decreasing by RMB 23/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 |
2,760 |
388.6 |
-20 |
-2.7 |
|
Liupanshui,Guizhou |
2,690 |
378.7 |
-30 |
-4.1 |
||
|
Nanchang,Jiangxi |
2,660 |
374.5 |
-10 |
-1.2 |
||
|
Handan,Hebei |
2,750 |
387.2 |
-30 |
-4.1 |
||
|
Anyang,Henan |
2,640 |
371.7 |
-30 |
-4.1 |
||
|
Zhangjiagang,Jiangsu |
2,710 |
381.5 |
-20 |
-2.7 |
||
|
Jinan,Shandong |
2,600 |
366.0 |
-20 |
-2.7 |
||
|
Average |
2,687 |
378.3 |
-23 |
-3.1 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have moved down amid the slow resumption of production due to the shrinking profitability on the steelmakers’ side. The demand for steel from downstream users has been slacker than market players had expected, exerting a negative impact on the scrap market. Meanwhile, Jiangsu-based China’s largest private steelmaker Shagang Group cut its scrap purchase price by RMB 50/mt ($7/mt) on March 6, also negatively affecting market sentiments. It is thought that scrap prices may continue their weak downtrend in the coming week.
The latest tradable level for ex-Japan HS scrap stands at $375/mt CFR, down by $5/mt on average over the past week. At the same time, the lowest possible price from the suppliers’ side is at $390/mt CFR.
$1 = RMB 7.1016