Fastmarkets’ proposal to decrease frequency of China import steel scrap indices

Fastmarkets’ indices for steel scrap, heavy recycled steel materials, cfr east China and steel scrap, heavy recycled steel materials, cfr north China have been subject to persistently low liquidity since June. Buying interest for imported steel scrap in China has been low in the past few months due to the wide gap between bids and offers for the material, according to market participants.

China imported 11,878 tonnes of steel scrap in October, a 51.8% drop month on month, according to the latest Chinese customs data.

The specifications for the east China price index, with proposed changes in italics, are as follows:

MB-STE-0889: Steel scrap, index, heavy recycled steel materials, cfr east China, $ per tonne
Quality: Cut structural and plate scrap, compliant with China scrap standard HRS101, minimum thickness of 6mm, minimum diameter of 10mm, length less than 1,500mm, width less than 600mm, maximum unit weight 1,500kg
Quantity: Minimum 2,000 tonnes (bulk)
Location: cfr eastern China ports
Timing: 3-10 weeks
Unit: US$ per tonne
Payment terms: Letter of credit on sight
Publication: Weekly, Tuesday and Friday, 5-6pm Shanghai time.

The specifications for the north China price index, with proposed changes in italics, are as follows:

MB-STE-0895: Steel scrap, index, heavy recycled steel materials, cfr north China, $ per tonne
Quality: Cut structural and plate scrap, compliant with China scrap standard HRS101, minimum thickness of 6mm, minimum diameter of 10mm, length less than 1,500mm, width less than 600mm, maximum unit weight 1,500kg
Quantity: Minimum 2,000 tonnes (bulk)
Location: cfr northern China ports
Timing: 3-10 weeks
Unit: US$ per tonne
Payment terms: Letter of credit on sight
Publication: Weekly, Tuesday and Friday, 5-6pm Shanghai time.

The consultation period for these proposed amendments starts on Thursday November 25 and will end on Monday December 27. The amendment will then take effect, subject to market feedback, on Tuesday January 4, 2022.

To provide feedback on these price indices, or if you would like to provide price information by becoming a data submitter to the prices, please contact Tianran Zhao by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Tianran Zhao re: China scrap import price.’

To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/about-us/methodology.