In November prices on the global ferrous scrap market improved slightly

Over the past month, prices on the world ferrous scrap market were in a wide range. Despite good preconditions for rising prices due to limited supply and dwindling inventories, traders were unable to make progress due to weak demand for billets and rebar.

Also, the price environment in the short term was unpredictable. In addition, the market saw an influx of cheap Chinese billets, the rolling of which was more profitable than scrap remelting.

However, last week (October 29 – November 6) ferrous scrap suppliers managed to raise prices after a long fluctuation of quotations at the same level. American exporters were able to raise prices to $300/mt CIF for HMS 1&2 (80:20). They argued their position by the rise in the price of scrap in the US domestic market. Turkish metallurgists are forced to accept a new price level due to a noticeable reduction in warehouse stocks.

In November, export prices for ferrous scrap will continue to grow due to a reduction in scrap procurement in the US and the EU, as well as the need to build up stocks, which was exhausted during the low purchasing activity of importers in October. Buyers will sign a large number of contracts for delivery in the winter – when the supply of raw materials traditionally decreases.

In addition, a smooth increase in the cost of long-rolled steel and semi-finished products is expected, which will provide significant support to quotations of steel raw materials. Under such conditions, the initiative in pricing will be firmly in the hands of suppliers. The forecasted range of prices for scrap in November is $290-310/mt CIF.

Source: "Ukrpromvneshexpertiza"