Weak demand for rolled metal pushes world scrap prices down

Last week (February 5-12), scrap metal quotations in all regional markets continued to decline due to weak demand for rolled products and rather high scrap stocks at importers. On the Turkish market, which is basic for Ukraine, the cost of all brands of scrap metal fell by $ 10. The cost of HMS 1 & 2 (80:20) scrap metal dropped to $390-400/mt CIF.

In the Turkish market, importers try to minimize the leftovers by purchasing small batches with short delivery times. At the same time, due to the rapidly falling prices on the domestic market, buyers are in no hurry to import and are trying to diversify sources of raw materials. This allows them to put pressure on suppliers who have significant reserves of raw materials.

In the Asian market, quotes for scrap metal of the base grade HMS1 fell to $420/mt CIF, which is the lowest value in the last two months. There is an influx of cheap Japanese scrap metal on the market, forcing American and Russian suppliers to cut prices and shorten delivery times.

Export quotations for scrap metal will continue to decline in all regional markets due to weakening demand for long products and high inventories from importers in Turkey and Asia. Also, the pressure on scrap prices will be exerted by the low profitability of trade in final products and a fairly high supply from US exporters. Forecasted price range for the current week is $385-395/mt CIF

Source: "Ukrpromvneshexpertiza"