Analysts predict an increase in the price of scrap metal in the world market in March

Last week (February 26 – March 5), scrap prices rose in all markets due to active replenishment of stocks by metallurgists in Turkey and Asia. The range of quotations for scrap HMS 1&2 (80:20) was $450-460/mt CIF, while shredded raw materials were trading $10 more expensive. In the previous week (February 19 – 26), the range of quotations was at the level of $440-450/mt.
In addition, deteriorating weather conditions in the United States led to a reduction in the supply of raw materials, as a result of which all exporters simultaneously increased their quotes. Also, support for the cost of scrap metal was provided by the widespread rise in prices for rebar and wire rod.
In March, export quotations for scrap metal will rise due to restocking by major buyers in Turkey and the Asian region. In addition, the prolonged drop in prices will lead to a gradual decline in scrap collection rates in the US and the EU, which are the main suppliers in all world markets. However, the rise in prices will still not be significant due to weak demand for finished rolled products and the expected drop in the cost of iron ore in the spot market. Also, noticeable pressure on prices at the end of the month will come from the factor of seasonal improvement in scrap procurement conditions in the northern hemisphere, in particular in the United States. The forecasted range of prices for scrap in March is $450-470/mt CIF.

Source: "Ukrpromvneshexpertiza"