Prices continued to rise in the global scrap metal market

Last week (February 19 – 26), scrap metal quotes rose in all key markets. Importers were actively replenishing stocks, which dropped significantly during the period of low business activity in the second half of January – first half of December. HMS 1&2 (80:20) scrap quotations in the Turkish market reached $440-450/mt CIF.

In the Turkish market, demand has increased for all types of scrap. Metallurgists felt the need for urgent delivery of raw materials, as their warehouse stocks dropped to critically low levels. The growth in demand for imported scrap is also facilitated by the rapid rise in the price of scrap in the domestic market. Temporarily lacking an alternative in the form of imports of cheap Chinese billets, Turkish factories are forced to make concessions to exporters from the US and the EU.

In the Asian market, the cost of scrap metal has also increased. Raw material buyers tried to diversify their sources of raw materials, but the rapid rise in prices in Turkey and limited supply from American suppliers did not allow them to curb another round of growth in value. Last week the price range for HMS1 scrap was $425-435/mt CIF.

In the coming weeks, export prices for scrap metal will rise in all markets, driven by strong restocking by large importers and increased demand for rebar in the Middle East and North Africa. We will also support the quotes and reduce the supply of scrap from US exporters. The forecast price range for the current week is $445-455/mt CIF.

Source: "Ukrpromvneshexpertiza"