Since the beginning of November, the price of scrap in the world has grown by $25-35 per ton

Last week (November 13 – 20), ferrous scrap prices rose in all international markets due to higher prices for long products and limited supply in the US and EU markets. On the benchmark for Ukraine – the Turkish market – the basic type of scrap HMS 1&2 (80:20) traded at $320-330/mt CIF.

In Turkey, quotations increased for all grades of ferrous scrap. Local producers are actively purchasing raw materials for ongoing production programs. Also, factories buy scrap with delivery in December-January. During this period, the supply of raw materials in the northern hemisphere will traditionally decline. Despite the active demand, traders are in no hurry to unload the accumulated raw materials and expect further growth in quotations. At the same time, American exporters have already set bid prices at $340/mt CIF.

In Asia, quotations for ferrous scrap are also growing following the rise in prices in other markets and the rise in prices for square billets from China. In addition, South Korean metallurgists are accumulating stocks for the winter. Currently, the cost of HMS1 scrap is in the range of $325-335/mt CIF.

In the coming weeks, ferrous scrap prices are expected to rise due to limited supply in the US and EU domestic markets, as well as the expected increase in demand for long products. An additional factor in the rise in prices will be the formation of winter stocks by the largest consumers in Turkey and South Korea. Forecast price range for ferrous scrap for the current week – $320–330/mt CIF.