Average scrap prices in the Chinese domestic market have seen rises compared to the level recorded on April 24.
Average domestic HMS scrap prices in China are at RMB 2,535/mt ex-warehouse, increasing by RMB 9/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 |
2,625 |
369.7 |
30 |
4.5 |
|
Liupanshui,Guizhou |
2,460 |
346.5 |
0 |
0.3 |
||
|
Nanchang,Jiangxi |
2,515 |
354.2 |
-50 |
-6.7 |
||
|
Handan,Hebei |
2,605 |
366.9 |
20 |
3.1 |
||
|
Anyang,Henan |
2,470 |
347.9 |
30 |
4.5 |
||
|
Zhangjiagang,Jiangsu |
2,585 |
364.1 |
10 |
1.7 |
||
|
Jinan,Shandong |
2,485 |
350.0 |
20 |
3.1 |
||
|
Average |
2,535 |
357.0 |
9 |
1.5 |
||
|
Note: Prices include three percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have increased amid the tight supply in the spot market. However, inventory of scrap did not decrease during the Labor Day holiday, causing steelmakers to be unwilling to build up stocks after the holiday. Finished steel prices have indicated some increases after the holiday, providing support for scrap prices. Jiangsu-based Shagang Group, China’s largest private steelmaker, raised its scrap purchase price by RMB 30/mt ($4.2/mt) on May 7, exerting a positive impact on the scrap market. It is thought that scrap prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
The latest ex-Japan HS scrap offer prices have been heard at $375/mt CFR or higher, while buyers’ price ideas have slipped by $10/mt over the past two weeks to $355/mt CFR at the highest, since local purchases have been more attractive.
$1 = RMB 7.1016