Last week (December 11 – 18), ferrous scrap metal quotations increased significantly again against the backdrop of the active conclusion of supply contracts by large importers. In addition, the supply of raw materials is limited, which pushes prices up. In such conditions, many importers are trying to purchase raw materials before the price of scrap metal rises even more on New Year's Eve. In the Turkish market, the price range for HMS 1&2 (80:20) scrap was $430-440 /mt CIF.The number of transactions in the Turkish market has increased compared to the previous week. Many buyers still need to replenish stock amid weak supply from the US and EU. American and European suppliers, despite strong demand, are in no hurry to unload warehouses, counting on the sale of scrap in the coming weeks at even higher prices.
In Asia, prices rose for all grades of raw materials. South Korean suppliers made large purchases, avoiding the purchase of scrap at even higher prices. The demand is also quite high in Taiwan, where the demand for billets and long products is increasing every day. Base view HMS 1&2 (80:20) was selling at $420/mt CIF.
In the coming weeks, scrap prices will increase due to limited supply in the US and EU domestic markets, as well as the expected growth in demand for long products. An additional factor in the rise in prices will be the formation of winter warehouse stocks by consumers in Turkey and South Korea. The forecasted range of prices for scrap this week is $435-450/mt CIF.
Source: "Ukrpromvneshexpertiza"
