The global ferrous scrap market equilibrated in weak supply and demand

Last week (October 15 22) quotes on the regional ferrous scrap markets remained at the level of the previous week. Exporters tried to turn the tide in their favor due to the drop in supply. However, importers offered very tough resistance amid weak sales of rolled products. The most popular raw materials, HMS 1&2 (80:20) were traded at $285-295/mt CIF Turkey.

In the Turkish market, demand remains weak. Metallurgists have sufficient reserves of raw materials, which allows them to selectively approach the conclusion of transactions. At the same time, negotiations are still being conducted quite actively, since there are enough for no more than 10 days. In the face of such a tough price confrontation, the quotes remained at the last week's level.

In Asia, demand is also low. South Korean importers are trying to postpone scrap purchases as much as possible, having sufficient stocks of raw materials and square billets. At the same time, prices for the basic type HMS1 fluctuate between $285-295/mt CIF. At the same time, Japanese scrap HMS2 is trading at $260/mt FOB.

Export quotations of scrap metal have reached the bottom and will gradually increase 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 low supply from American and European suppliers. The forecasted range of prices for scrap this week is $285-295/mt CIF Turkey.

 Source: "Ukrpromvneshexpertiza"