Ferrous scrap sellers are waiting for the November market activation

Despite weak demand for ferrous scrap, which dominated most regional markets throughout the last week (October 8 – 15), exporters were able to keep quotes from declining amid limited supply in their domestic markets. The price range for HMS 1&2 (80:20) ferrous scrap was USD 285-295/mt CIF Turkey.

In the Turkish market, demand remained weak. Buyers are more focused on sales of rebar and wire rod, with large stocks of ferrous scrap. In such circumstances, most of them preferred to cooperate with local suppliers who supply small quantities in a short time.

In the Asian market, prices also fluctuated at the level of the previous week. South Korean metallurgists were in no hurry to make purchases, having large remains of raw materials in warehouses. In addition, Chinese exporters offered quite large volumes of cheap square billets, which put pressure on ferrous scrap demand.

In the coming weeks, export prices for ferrous scrap will continue to decline on the back of bringing inventories to the norm and weakening demand for finished steel. However, in November, the upward price trend will recover again due to improved demand for finished metal products and a significant decrease in stocks. The forecasted range of prices for scrap this week is USD 280-290/mt CIF Turkey.

Source: "Ukrpromvneshexpertiza"