Scrap metal quotes in the first decade of December decreased

Last week, scrap metal quotations sank in all regional directions, which was caused by weak demand for finished rolled products and low profit margins in rolled metal trade. The average cost of HMS 1 & 2 (80:20) scrap was $475-485/mt CIF.

In Turkey, the number of transactions is minimal. In the face of negative market conditions for finished rolled products and billets, importers of raw materials are in no hurry to purchase large batches, even in spite of declining stocks and limited supply. Most of the factories are waiting for the development of the situation in the segment of finished products and prefer purchasing scrap on the domestic market. In addition, the steelmakers are confident that the downtrend will continue in the coming weeks, which makes it meaningless to carry out large-scale purchases at the moment.

In Asia, the cost of all grades of scrap also declined. South Korean metallurgists have reduced purchasing activity, concentrating on sales of rebar and wire rod. HMS1 scrap price was $465-475/mt CIF.

In the near future, scrap prices will drop slightly due to weak demand for rebar and wire rod. Price growth is expected to recover from January due to the replenishment of stocks by the largest buyers and the formation of reserves for the winter period. The quotes will also be supported by a low supply of material from American and European suppliers. The forecast range of scrap prices for the current week is $470-480/mt CIF.

Source: "Ukrpromvneshekspertiza"