Analysts expect scrap prices in the range of $480-500/mt in November

Last week (October 29 – November 5), the cost of scrap fell to $495/mt CIF. The largest importers reduced their purchases in the context of bringing some of them to the standard level of stocks. Also, prices are under pressure from falling prices for iron ore raw materials. Despite the decline in demand, traders are very reluctant to make concessions to buyers, counting on the rise in prices in the coming weeks.

In November, export prices for scrap metal will slightly decrease due to weak demand for long products and restocking from large importers in Turkey and South Korea. Also, the cheapening of iron ore raw materials will have a strong impact on the expected price correction, which will allow steelmakers to increase the share of pig iron in the charge.

We do not expect a significant drop in the cost of raw materials due to the dwindling supply and importers' fears that scrap collection will deteriorate further in the event of a significant decrease in prices. The forecasted range of prices for scrap in November is $480-500/mt CIF.

Source: "Ukrpromvneshexpertiza"