The proposal follows initial feedback from participants who are seeing little liquidity in the Chinese scrap import spot market due to a persistent gap between bids and offers for the material.
In the first half of 2024, China imported just 27,282 tonnes of ferrous scrap, down by 52.28% year on year, according to data released by China Customs.
The proposed new specifications are listed below, with the proposed amendment of price frequency in italics:
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: Monthly. First Friday of the month, 5-6pm Shanghai time
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: Monthly. First Friday of the month, 5-6pm Shanghai time
These prices are a part of the Fastmarkets scrap package.
The consultation period for this proposed amendment starts from Thursday July 25 and will end one month from the date of this pricing notice, on Monday August 26. The amendment will then take place, subject to market feedback, on Wednesday August 28.
All historical data relating to the indices prior to the amendment will remain available in the pricing section of the Fastmarkets website.
To provide feedback on the Chinese steel scrap indices, or if you would like to provide price information by becoming a data submitter to the indices, please contact Tianran Zhao by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Tianran Zhao, re: China steel scrap import price indices.”
Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.
To see all Fastmarkets pricing methodology and specification documents, go to https://www.fastmarkets.com/methodology.
