Last week (September 24 - October 1), ferrous scrap prices on international markets decreased. Importers are experiencing difficulties in selling finished rolled products (rebar). In addition, the majority of metallurgists have sufficient stocks, which allows them to temporarily stop purchasing. As a result, quotations for scrap HMS 1&2 (80:20) dropped to USD 200-300/mt CIF Turkey.In the first half of September, an uptrend dominated the regional markets. Exporters took advantage of the existing deficit of ferrous scrap in the domestic and foreign markets, systematically increasing the quotations of raw materials. At the same time, the growth in the utilization of metallurgical capacities in Turkey and the United States acted as an additional factor in the rise in prices. However, in the second half of the month, having brought stocks to the standard level, importers stopped purchasing raw materials. They gave preference to using warehouse stocks and purchasing ferrous scrap on domestic markets. As a result, the quotes were in a wide price range.
In October, a downward trend will dominate in all international markets. Metallurgists will try to buy raw materials only when absolutely necessary due to the deteriorating demand for rebar and wire rod, the availability of warehouse stocks, as well as the desire to reduce prices as much as possible before replenishing stocks for the winter period. In addition, declining ore spot prices and coking coal quotations will allow metallurgists to replace ferrous scrap with cheaper iron, which is also contributing to the downward price trend. The forecasted range of prices for scrap in October is USD 270-300/mt CIF.
Source:"Ukrpromvneshexpertiza"
