Analysts expect a rise in the price of scrap in the Turkish market

Last week prices for scrap continued to grow, although the growth rate slowed down significantly against the backdrop of a situational increase in the supply of raw materials. And on the Turkish market, scrap HMS 1&2 (80:20) rose in price to $505/mt CIF, which is $5/mt more than a week earlier.

The factories were actively purchasing large consignments of raw materials, fearing a further rise in prices, as well as having a significant open demand for scrap metal for the next month. Suppliers rushed to raise their quotes to $515/mt CIF, but such prices turned out to be unacceptable for the majority of buyers who want to wait for a clarification of the further development of the situation in the finished steel segment.

On the Asian market there is a rise in prices for scrap of all brands. The most active are importers from South Korea, which have not yet brought stocks to the standard level. In addition, buyers have begun to build up stocks for the winter, which contributes to an increase in demand in October-November. As a result, the cost of HMS1 material increased to $490-500/mt CIF ports in South Korea.

In the near future, export prices for scrap metal will increase due to the replenishment of stocks by the largest buyers and the creation of reserves for the winter period. The quotes will also be supported by the dwindling supply of raw materials from American and European suppliers, who are experiencing a shortage of scrap in the domestic markets of their countries. The forecasted range of scrap prices for the current week is $500-510/mt CIF.

Source: "Ukrpromvneshexpertiza"