Scrap metal quotes in world markets are gradually decreasing

Last week (July 23-30), scrap metal quotations were gradually decreasing in all directions. Importers have sufficient stocks at their disposal, which allow them to reduce purchasing activity, while waiting for significant discounts. The operating price range in the Turkish market was $470-480/mt CIF for scrap HMS 1&2 (80:20) against the background of $480-490/mt in the period July 17-23.

In the Turkish market, deals were made only sporadically. The American trader agreed to sell a large batch of mixed raw materials, in which HMS 1&2 (80:20) scrap was valued at $475/mt CIF. The deal influenced market sentiment, and most of the refineries rushed to set bid prices at $465-470/mt CIF. So far, such prices are not acceptable for traders due to the continuing high purchase cost of the material in the domestic markets of their countries.

In the Asian market, the cost of scrap metal is also declining. Traders understand the inevitability of a further continuation of the downtrend and rush to unload the accumulated raw materials. On the other hand, factories are very selective in their approach to procurement, since they have a significant number of alternative proposals. Currently, the price for HMS1 grade scrap is $465/mt CIF ports in South Korea.

In the near future, quotations of scrap metal will continue to move downward due to the bringing of the balance by importers to the normative level and overheating of the market. The increase in supply from US and EU exporters will also exert pressure on prices. However, the decline in prices will not be significant - low rates of scrap collection in the United States and high prices in the domestic markets of the largest exporting countries will limit the scale of the decline. Forecast price range for scrap this week – $465-475/mt CIF.

Source: "Ukrpromvneshexpertiza"