Last week (June 18 - 25), prices for scrap metal on the world market did not change. Traders attempted to raise prices, but in the face of weak demand for flat products, this tactic yielded little results. On the key Turkish market for Ukraine, the operating price range remained at the previous level - $495-505/mt CIF.
Raw materials from Romania and Bulgaria were most actively bought on the Turkish market, while material from the USA was practically not in demand due to its high cost. Despite the low interest of Turkish factories in American scrap, suppliers are not ready to provide discounts against the background of low trade margins and high purchase prices in the US domestic market.
In Asia, the situation developed in a similar way. Large mills are in no hurry to switch to active scrap purchases, observing the development of the situation in the flat-rolled steel segment. South Korean factories preferred to buy Japanese HMS2 scrap, which is delivered promptly and in small volumes. The indicative cost for HMS1 was $485/mt CIF.
In the near future, quotations of scrap metal will move downward due to the replenishment of residues by importers to the standard level and overheating of the market. The increase in supply from US and EU exporters will also put 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. The forecast range for scrap prices next week is $490-500/mt CIF.
Source: "Ukrpromvneshexpertiza"
