World ferrous scrap prices are approaching to $400 per ton

Last week (December 4 –11), ferrous scrap quotes rose in all regional markets due to the rise in prices for finished rolled products, as well as active replenishment of stocks by Turkish factories. The average cost of HMS 1 & 2 (80:20) scrap on the Turkish market was $380-390/mt CIF. At the same time, many exporters are already setting bid prices at $400/mt CIF.
In the Turkish market, prices for scrap metal of all brands increased by $25, which is still unacceptable for most importers, even despite the active growth in prices in the segment of long products. In such conditions, importers try to buy as much as possible before the next price spiral, which pushes prices up. In addition to market factors, the cost of scrap is also supported by the complication of delivery conditions for raw materials from the river ports of Russia.
In the Asian scrap market, prices have also increased in all importing markets. Thus, South Korean importers agree to purchase HMS1 grade material at $ 380-390/mt CIF. However, fewer and fewer exporters are ready to ship scrap at this cost, since all market players expect the price of raw materials to rise to $ 400-410/mt in the coming weeks. In Taiwan's scrap market, HMS 1&2 (80:20) scrap prices rose to $370/mt CIF.
In the remainder of December, quotations of scrap metal on foreign markets will continue to rise against the backdrop of a growing seasonal deficit and growing demand from buyers in Turkey and South Korea. The increase in demand for raw materials will be driven by an increase in the utilization of steel capacities in the US and Turkey, as well as a limited supply of material from European and US suppliers. Along with this, an increase in prices for square billets and rebar is expected, as well as complication of the terms of delivery of scrap metal, which will allow suppliers to dictate the terms of cooperation. The forecast range of prices for scrap in December is $380-400/mt CIF.

Source: "Ukrpromvneshexpertiza"