Scrap prices in the Chinese domestic market have fluctuated in a limited range in the past week, with the average level down slightly compared to the previous week. The tradable level for Japanese HS scrap is still $15-20/mt below the lowest possible offers from sellers.
Average domestic HMS scrap prices in China are at RMB 2,710/mt ex-warehouse, decreasing by RMB 9/mt on average compared to previous week, according to SteelOrbis’ information.
Average scrap prices in China’s main markets are presented in the following table.
|
Product name |
Specification |
Origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
|
HMS scrap |
> 6 mm |
Tianjin |
2,820 |
396.5 |
+20 |
+2.9 |
|
Liupanshui, Guizhou |
2,720 |
382.5 |
+30 |
+4.3 |
||
|
Nanchang, Jiangxi |
2,640 |
371.2 |
-50 |
-7.0 |
||
|
Handan, Hebei |
2,790 |
392.3 |
-10 |
-1.4 |
||
|
Anyang, Henan |
2,640 |
371.2 |
0 |
+0.1 |
||
|
Zhangjiagang, Jiangsu |
2,720 |
382.5 |
-10 |
-1.4 |
||
|
Jinan, Shandong |
2,640 |
371.2 |
-40 |
-5.6 |
||
|
Average |
2,710 |
381.0 |
-9 |
-1.2 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have edged down amid shrinking profitability on the steelmakers’ side. Cautious sentiments have prevailed among market players, contributing to the rises in inventory levels of scrap. Some steelmakers have finished building up stocks for the winter season and so they have cut their scrap purchase prices. However, as the Chinese New Year holiday (February 9-16) is drawing closer, supply of scrap in the market will be limited, which will bolster prices to a certain degree. It is expected that scrap prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
The latest tradable level for ex-Japan HS has remained at $380-385/mt CFR, but offers are still at around $410/mt CFR. The lowest possible level for this grade from Japan is $400/mt CFR, according to sources, which is in line with the latest deal to South Korean mill POSCO.
$1 = RMB 7.1053