The new assessment will be for heavy scrap classified under the Chinese standard HRS101. This is a grade of cut structural and plate scrap which - outside of China - fits under the category of plate and structural (P&S) scrap, or in Japan, HS scrap.

The price will be assessed on a cfr eastern China ports basis. Price points given by active market participants for other ports in mainland China will be normalized to a cfr eastern China basis.

Fastmarkets will not normalize pricing information for cargoes sold to any other market - such as Vietnam, South Korea or Taiwan - to arrive at the cfr China price assessment.

While this information provided by data submitters will be taken as supplementary information, all assessments will be based directly on primary data gathered on a cfr China basis.

China is expected to be a regular importer of ferrous scrap due to the evolution of its steel industry. It is expected to continue to increase its ferrous scrap consumption in the steelmaking process.

Chinese annual scrap use could reach 330 million tonnes by 2030 and account for up to half of the country’s steel production, the China Association of Metal Scrap Utilization (Camu) said in 2019.

The new China scrap price will deliver more choices to subscribers and widen Fastmarkets’ coverage of the Asian scrap market.

The addition of the price - which will be published in line with International Organization of Securities Commissions (Iosco) standards and benchmark regulations - will reinforce Fastmarkets’ position as the leading global price reporting agency for Asia’s ferrous scrap market.

The proposed specifications for the price assessment are as follows:

Steel scrap, heavy recycled steel materials, cfr China, $/tonne
Quality: Cut structural and plate scrap, compliant with China scrap standard HRS101
Size: Minimum thickness of 6mm, minimum diameter of 10mm, length under 1,500mm, width under 600mm
Maximum unit weight: 1,500kg
Quantity: Minimum 2,000 tonnes (bulk)
Location: cfr eastern China ports (normalized for other Chinese mainland sea ports)
Timing: 3-10 weeks
Unit: $/tonne
Payment terms: Letter of credit on sight
Publication: Daily, 5-6pm Shanghai time

To provide feedback on this price or if you would like to provide price information by becoming a data submitter to any of these prices, please contact Jessica Zong or Paul Lim by email at: pricing@fastmarkets.com. Please add the subject heading "FAO: Jessica Zong/Paul Lim, re: China scrap prices."

To see all of Fastmarkets’ pricing methodology and specification documents, please go to www.metalbulletin.com/prices/pricing-methodology.html.