Demand and prices for scrap in international markets began to rise

Last week (November 6-13), ferrous scrap prices increased simultaneously in all key international markets. Metallurgists are actively replenishing stocks for the winter, which allows suppliers to dictate prices. On the “benchmark” for Ukraine — the Turkish market — the main number of transactions was concluded at $300-310/mt CIF for scrap HMS 1&2 (80:20). At the same time, crushed scrap was traded $10 more expensive.

In Turkey, prices have increased for all grades of scrap. Local buyers have become more active in making large deals to replenish stocks and maintain ongoing production programs. In turn, suppliers set higher bid prices, trying to finally seize the initiative in pricing.

In the Asian market, scrap prices are also moving up. Traders took into account the rise in prices for square billets from China and limited supply in the US. They simultaneously raised prices for all grades of raw materials. Last week the price for the base grade HMS1 was $310/mt CIF. Japanese scrap HMS2 was sold at $280/mt FOB.

In the next 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 increase in prices will be the formation of winter warehouse stocks by the largest consumers in Turkey and South Korea. The forecasted range of prices for scrap for the current week is $305-315/mt CIF.

Source: "Ukrpromvneshexpertiza"