Last week, scrap on the Turkish market was traded at $495-505/mt

Last week (June 4-11), scrap metal quotations moved unevenly - the decline in prices at the beginning gave way to growth at the end of the week. In general, the confrontation between importers and traders is intensifying in the market, the vision of the price level of which is significantly different. The range of quotations on the Turkish market was $495-505/mt CIF. Last week (May 28 - June 4) it was at the level of $500-510/mt CIF.

In Turkey, the number of transactions was low. Most buyers are trying to postpone purchases, assessing the prospects for the development of the rebar and wire rod market. In turn, exporters are also in no hurry to ship raw materials, since there has been an increase in prices for rebar in the Turkish domestic market, which gives hope to suppliers regarding a possible increase in prices in this market in the near future.

In Asia, material costs have also remained stable. The intentions of traders to raise the quotes came up against weak demand for locally produced rebar. As a result, the factories preferred to operate on warehouse stocks, the level of which exceeds the standard. The HMS1 scrap price was at $490/mt CIF.

In the near future, quotations of scrap metal will turn downward due to the replenishment of balances by importers to the standard level and overheating of the market. The increase in supply from the US and EU exporters will also exert pressure on prices. However, the decline in prices is unlikely to be significant - low rates of scrap collection in the United States and high prices in the domestic markets of the largest exporting countries will limit the scale of the decline. The forecast average price level for the current week is $505/mt CIF.

Source: "Ukrpromvneshexpertiza"