Last week (October 1 - 8), quotations of ferrous scrap on the world market continued to decline - to USD 285-295/mt CIF Turkey for НMS 1 & 2 (80:20). Metallurgical enterprises have large warehouse stocks, so they have reduced their purchases. The weak demand for Turkish rolled products also exerts significant pressure on the cost of raw materials.The number of transactions in the Turkish market has dropped significantly. Buyers are trying to diversify their sources of raw materials. At the same time, the halt in the growth of prices for ferrous scrap in the US domestic market also plays in their favor. However, despite the predominantly negative market conditions, traders are in no hurry to make price concessions due to weak ferrous scrap collection rates in the domestic markets of their countries.
In Asia, quotes remained unchanged. South Korean consumers insist on lowering prices, but American suppliers argue their position with limited volumes of raw materials.
In the coming weeks, export prices for ferrous scrap will continue to decline due to bringing stocks to the standard level and weakening demand for rolled products. The target level at the end of the month is USD 275/mt CIF Turkey. However, in November the price trend will go up again due to improved demand for metal products and a decrease in stocks.
The forecast range of prices for ferrous scrap this week is USD 280-290/mt CIF Turkey.
Source: "Ukrpromvneshexpertiza"
