Average scrap prices in the Chinese domestic market have indicated a slight uptrend in the past week, though the overall situation in the market has been assessed as mostly stable rather than positive. The import market has remained at a standstill.
Average domestic HMS scrap prices in China are at RMB 2,620/mt ex-warehouse, increasing by RMB 4/mt on average compared to 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 (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
|
HMS scrap |
> 6 mm |
Tianjin |
2,670 |
373.9 |
0 |
+1.9 |
|
Liupanshui, Guizhou |
2,585 |
362.0 |
+30 |
+6.0 |
||
|
Nanchang, Jiangxi |
2,575 |
360.6 |
0 |
+1.8 |
||
|
Handan, Hebei |
2,660 |
372.5 |
0 |
+1.9 |
||
|
Anyang, Henan |
2,545 |
356.4 |
0 |
+1.8 |
||
|
Zhangjiagang, Jiangsu |
2,670 |
373.9 |
0 |
+1.9 |
||
|
Jinan, Shandong |
2,635 |
369.0 |
0 |
+1.9 |
||
|
Average |
2,620 |
366.9 |
+4 |
+2.4 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have fluctuated within a limited range amid slightly increasing inventory levels. Ferrous metal futures prices have increased, bolstering scrap prices. At the same time, prices of other raw materials, including iron ore and coke prices have moved up, positively affecting scrap prices. Steelmakers have been eager to produce, which will exert a positive impact on the demand for scrap.
It is thought that scrap prices in the Chinese domestic market will likely move sideways in the coming week.
The latest tradable level for ex-Japan HS has settled at $375/mt CFR, up by $2.5/mt on average over the past week. Offers from Japan have added $5/mt over the past week to $395-400/mt CFR. As sellers have been able to sell some volumes at this level to other Asian markets like Vietnam, they have been reluctant to cut prices for China.
$1 = RMB 7.1254