Last week (May 14-21), scrap quotations stabilized at $505-510/mt CIF for HMS 1&2 scrap (80:20). Importers tried to diversify their sources of raw materials to contain the rise in prices. In addition, many buyers reduced their purchases due to the increase in inventory.
Raw materials from Russia and Romania were in greatest demand on the Turkish market. Exporters from these countries can deliver small consignments in a short time, which is currently in demand by Turkish steel producers. At the same time, the demand for American scrap decreased slightly due to high supply prices - traders from the USA announced new prices at $515/mt CIF for HMS 1&2 (80:20) scrap. However, this price is not yet able to interest the majority of buyers who expect further development of the trend in the segment of long products.
In the Asian market, scrap prices also remained at the same levels. South Korean factories are in no hurry to proceed to the next stage of purchases, observing the dynamics of prices for square billets. In addition, warehouse balances at many mills have grown significantly, which allows them to selectively approach purchases. The current value of HMS1 scrap was in the range of $485-495/mt CIF.
This week, scrap metal quotes will grow further, but in the future prices will fall due to the replenishment of the balance to the normative level and overheating of the market. The increase in supply from the US and EU exporters will also exert pressure on prices. The forecast price range for the current week is $510-520/mt CIF.
Source: "Ukrpromvneshexpertiza"
