Last week (March 19 – 26), scrap metal quotations in all regional markets fell against the backdrop of high supply and the difficulties of metallurgists with the sale of finished rolled products. As a result, the Turkish market for HMS 1&2 (80:20) scrap fell to $405-415/mt CIF. In the previous week (March 12 – 19), the range of quotations was at the level of $420-430/mt CIF.In particular, the number of transactions in the Turkish market has decreased. The approach of Ramadan and the dominant downward trend in prices are encouraging metallurgists to make minimal purchases in anticipation of their further decline. In addition, at the moment, Turkish metallurgists are finding it difficult to find buyers for rebar due to the slowdown in the development of the construction segment on the eve of Ramadan. On the other hand, American exporters have large volumes of scrap, which puts pressure on the cost of raw materials.
In the Asian market, scrap prices have also declined. South Korean importers have large scrap stocks. In addition, Japanese suppliers offer significant volumes of these raw materials at discounted prices. As a result, quotations for HMS1 crude fell to $405/mt CIF, while Japanese crude traded at $380/mt FOB.
In the coming month, scrap prices will gradually decline against the background of weakening demand for long products, lower prices for iron ore raw materials and increased supply from suppliers from the US and the EU. Also, high stocks of raw materials at the largest importers will have a negative impact on prices. The forecast range of scrap prices for the current week is $400-410/mt CIF.
Source: "Ukrpromvneshexpertiza"
