Weak demand for rebar and wire rod in Turkey puts pressure on scrap prices

Analysts expect scrap prices to drop slightly in the near future due to weak demand for rebar and wire rod. The recovery in price growth is expected from December due to replenishment of stocks by the largest buyers and the formation of reserves for the winter period.

Last week, scrap metal quotations remained unchanged. Key suppliers insisted on raising the cost of the material, but importers are not yet ready to accept the rise in prices amid sluggish demand for finished steel.

In the Turkish market, the cost of HMS 1 & 2 (80:20) grade material ranges from $ 490-500 / t CIF. Local factories have increased their stocks and so far have not shown much desire to make large-scale purchases - only some of them purchase consignments of more than 20 thousand tons, while the rest are content with small deliveries at the level of 5-10 thousand tons. At the same time, many buyers are guided by the domestic market, trying to reduce prices in external directions. Despite the significant pressure, exporters do not make concessions, arguing their position with low supply.

In the Asian market, the price of scrap metal remains unchanged. South Korean metallurgists purchased sufficient volumes of material last week and expect further developments in the rolling segment. Currently, the average market value of HMS1 scrap is $ 480-490 / t CIF, while HMS2 is traded $ 10 / t less.

The quotes will also be supported by a low supply of material from American and European suppliers. The forecast range of scrap prices for the current week is $ 490-500 / t CIF.

Source: "Ukrpromvneshekspertiza"