Scrap metal quotes in Turkey fell by $10 – to $465-475/mt

Last week, the downward trend continued on the market amid weak demand for billets, as well as a fairly high supply from suppliers from the US and the EU. On the Turkish market, prices for HMS 1&2 (80:20) scrap were in the range of $465-475/mt CIF.

In the Turkish market, the number of transactions was minimal – local factories tried not to make large purchases in the face of low demand for rolled products and uncertainty of the situation on the metal products market. At the same time, many of them still have sufficient stocks, which allows them to postpone purchases even when it is necessary to increase the consumption of raw materials. Some buyers were quick to announce bid prices another $10 lower ($460/mt CIF for HMS 1&2 (80:20) scrap). However, so far such quotations are not acceptable for suppliers, primarily from the United States, whose domestic market is experiencing a shortage of raw materials.

In the Asian market, quotations for scrap metal also went down on the back of an increase in supply from Japanese suppliers, as well as an influx of cheaper Chinese billets. As a result, prices for HMS1 scrap dropped to $460/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 raw materials from American and European suppliers. The forecasted range of scrap prices for the current week is $460-470/mt CIF.

Source: "Ukrpromvneshekspertiza"