Last week (October 22– 29), ferrous scrap quotations moved horizontally. Traders tried to seize the initiative in pricing, but weak demand for rebar and wire rod did not allow them to achieve what they wanted. The price range for HMS 1&2 (80:20) scrap was $285-295/mt CIF Turkey.
The number of transactions in the Turkish market was minimal. Factories acquired small batches, although their inventory was rapidly dwindling. Given the uncertainty of the rolled metal market conditions, the factories are in no hurry to conclude large deals. In addition, in the Turkish domestic market in some regions, prices for steel scrap fell slightly, which puts pressure on the demand for imported raw materials.
In the Asian market, ferrous scrap prices have remained unchanged for the fourth consecutive week. However, the average market quotation of the base type HMS 1 with real contracts is approaching the upper limit of the range of $285-295/mt CIF. Importers are increasingly forced to purchase raw materials amid depletion of stocks and rising prices for rebar and Chinese billets.
Apparently, ferrous scrap metal quotes have reached the bottom and will gradually grow in the future. The main factor behind the increase in the cost of raw materials will be the recovery in demand for rolled products and a low supply of scrap metal from American and European suppliers. Forecast range of prices for scrap for the current week is $285-295/mt CIF Turkey.
Source: "Ukrpromvneshexpertiza"
