The rise in prices for scrap in the world market has slowed down

Last week (March 5-12), prices for scrap metal on the world market rose slightly against the background of replenishment of stocks by Turkish and Asian metallurgists. However, by the end of the week, there was a slight rollback of quotations downward, which is a signal of an imminent change in the price trend. The cost of HMS 1&  (80:20) scrap at the benchmark - the Turkish market - increased to $455-465/mt CIF. In the previous week (February 26 - March 5), the range of quotations was at the level of $450-460/mt.
In the Turkish market, scrap prices have increased by $ 5 compared to last week. Local metallurgists were quite active in purchasing raw materials to replenish stocks. In addition, the need to purchase scrap for future use was dictated by the high demand for locally produced rebar and wire rod. However, by the end of the week, most of the deals were nevertheless concluded closer to the lower border of the specified range.
In the Asian market, the cost of scrap metal has also slightly increased. South Korean metallurgists purchased raw materials with delivery in April. At the same time, many of them have not yet covered the demand for March, which stimulated them to partially cover the demand by importing billets from China in order to roll them further. Last week, the cost of HMS1 scrap ranged from $440-450/mt CIF, while HMS 1&2 (80:20) scrap traded at $420-430/mt CIF.
In the coming month, scrap prices will gradually decline amid weakening demand for long products, lower prices for iron ore and increased supply from US and EU suppliers. Quite high stocks of raw materials from the largest importers will also have a negative impact on prices. The forecasted range of prices for scrap this week is $450-460/mt CIF.

Source: "Ukrpromvneshexpertiza"