Average scrap prices in the Chinese domestic market have remained relatively stable this week, but positive sentiments have prevailed in the market.
Average domestic HMS scrap prices in China are at RMB 2,534/mt ex-warehouse, rising by RMB 4/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 |
2605 |
366.5 |
0 |
-0.1 |
|
Liupanshui,Guizhou |
2510 |
353.2 |
50 |
6.9 |
||
|
Nanchang,Jiangxi |
2480 |
349.0 |
0 |
-0.1 |
||
|
Handan,Hebei |
2605 |
366.5 |
10 |
1.3 |
||
|
Anyang,Henan |
2490 |
350.4 |
-20 |
-2.9 |
||
|
Zhangjiagang,Jiangsu |
2565 |
360.9 |
-10 |
-1.5 |
||
|
Jinan,Shandong |
2480 |
349.0 |
0 |
-0.1 |
||
|
Average |
2534 |
356.5 |
4 |
0.5 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
Jiangsu-based Shagang Group, China’s largest private steelmaker, announced a RMB 50/mt rise in its scrap purchase price on May 22, exerting a positive impact on the market. Since demand for scrap has improved, steelmakers have started to raise their purchase prices to attract more supplies. Ferrous metal futures prices have seen a rebounding trend in the given week, positively affecting market sentiments. At the same time, the real estate market is anticipated to improve amid China’s issuance of stimulus policies, also bolstering sentiments in the steel market. It is thought that scrap prices in the Chinese market will likely edge up in the coming week.
The latest ex-Japan HS scrap tradable prices have remained stable at $355/mt CFR, while offers are still at $370-375/mt CFR. Even though Japanese exporters face reduced demand from buyers in the Far East, with South Korean mills focusing on local sourcing and demand from Vietnam being limited, they still have stable local demand and prices and so they are not agreeing to much lower bids from abroad.
$1 = RMB 7.1077