Last week (May 28 - June 4), scrap prices declined in all key markets due to weakening demand for long products and continued strong supply from US and European suppliers.
Buyers in Turkey have cut back as much as possible, hoping to move to purchasing later at lower prices. As a result, quotes for HMS 1&2 (80:20) fell to $500-510/mt CIF western ports of Turkey. In the previous week (May 21 - 28), the range of quotations was at the level of $510-520/mt.
In June, scrap quotes will go down due to the importing of stocks to the normative level and a halt in the growth of prices for long steel. Also, the decreasing margins of Turkish rebar and wire rod trade will put pressure on the price of scrap metal. However, the drop in prices is unlikely to be significant due to the expected persistence of a high spot price for ore and the absence of a deep decline in prices for long products. The forecasted range of scrap prices in June is $470-510/mt CIF.
Source: "Ukrpromvneshexpertiza"
