During the week ending January 26, local steel scrap prices in the Chinese market have indicated a rising trend, while transaction activity in the overall market has been lower than in the previous week and is currently sluggish. Average scrap prices in China's main markets are presented in the following table.
During the given week, cold weather and heavy snowfall have hit China, negatively impacting transaction activity in the domestic scrap market. Approaching the Chinese New Year holiday (February 8-14), some players have already left the market. On the other hand, the rising movement of steel futures prices has boosted sentiment and provided support for the upticks in scrap prices in the past week. Meanwhile, as the weather improves in China, domestic steelmakers will probably step up their scrap purchases, which will also provide some support for scrap prices. It is thought that scrap prices in the Chinese domestic market will likely move sideways in the coming week.
Product Name | Spec. | Origin | Price (RMB/mt) | Price ($/mt) | Weekly Change (RMB/mt) |
HMS scrap | > 6 mm | Tianjin | 1,110 | 169 | ↑40 |
Liupanshui | 1,170 | 178 | ↑20 | ||
Zhangjiagang | 1,140 | 173 | ↑20 | ||
Handan | 1,100 | 167 | ↑20 | ||
Nanchang | 1,120 | 170 | 0 | ||
Anyang | 1,100 | 167 | ↑20 | ||
Jinan | 1,140 | 173 | 0 | ||
Average | 1,126 | 171 | ↑17 |
All prices include 17 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.58