Average scrap prices in the Chinese domestic market have indicated slight decreases compared to the previous week as demand has continued to soften, while supply has been firm and some suppliers have become more active.
Average domestic HMS scrap prices in China are at RMB 2,719/mt ex-warehouse, decreasing by RMB 19/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 |
Price |
Weekly change |
Weekly change |
|
HMS scrap |
> 6 mm |
Tianjin |
2,800 |
393.6 |
-10 |
-2.1 |
|
Liupanshui,Guizhou |
2,690 |
378.2 |
-10 |
-2.0 |
||
|
Nanchang,Jiangxi |
2,690 |
378.2 |
0 |
-0.6 |
||
|
Handan,Hebei |
2,800 |
393.6 |
0 |
-0.7 |
||
|
Anyang,Henan |
2,640 |
371.2 |
-20 |
-3.4 |
||
|
Zhangjiagang,Jiangsu |
2,730 |
383.8 |
-30 |
-4.9 |
||
|
Jinan,Shandong |
2,680 |
376.8 |
-60 |
-9.1 |
||
|
Average |
2,719 |
382.2 |
-19 |
-3.3 |
||
|
Note: Prices include 3 percent VAT as of March 1 2022. |
||||||
During the given week, scrap prices in the Chinese domestic market have indicated a declining trend as some steelmakers have cut their purchase prices for scrap. Currently, scrap prices are showing a stronger trend than finished steel prices, thereby reducing steelmakers’ profitability. At the same time, import iron ore and local coke prices have declined, exerting a negative impact on the scrap market. Bearish sentiments have prevailed among market players, negatively affecting scrap prices. Some shortages of scrap supply have been seen due to the weather conditions, but compared to last week the supply situation has improved somewhat. It is thought that scrap prices in the Chinese domestic market will edge down slightly in the coming week.
The latest tradable level for ex-Japan HS has declined slightly to $380-385/mt CFR, versus $385-390/mt CFR last week. However, this level is indicative as it is entirely unacceptable to sellers, who view the tradable level for HS as being around $420/mt CFR in Vietnam and at $410/mt CFR in Korea.
$1 = RMB 7.1168