Over the past week (January 29 - February 5), scrap prices continued to decline. Last week the price range was $390-410/mt CIF Turkey. The previous week quotes were at $400-410 /mt. Throughout January, the cost of scrap fell by $50-60/mt.
Exporters of raw materials cannot keep quotations against the background of an almost complete lack of demand from importers of Turkey and South Korea. In addition, they have sufficient stocks. In turn, metallurgists are still unable to stop the fall in prices for rebar and wire rod, which forces them to reduce scrap purchases.
In February, scrap prices will continue to decline smoothly due to large stocks of raw materials in warehouses at consumers, as well as the lack of growth in the cost of products on the long-rolled steel market in the Middle East region and Turkey. Despite the winter period, the rapid rise in scrap prices in the past months will allow the scrap collection industries to maintain high productivity. As a result, the increased supply is expected to continue, which will contribute to lower prices for scrap in key sales markets. The forecasted range of scrap prices in February is $370-390/mt CIF.
Source: "Ukrpromvneshexpertiza"
