Scrap prices on the Turkish market are in the range of $480-490/mt

Last week (July 17-23), scrap steel quotes resumed their decline amid weak demand for rebar and wire rod in the world market, as well as strong supply from American and European suppliers. The operating price range in the Turkish market was $480-490/mt CIF for HMS 1&2 scrap (80:20).

In the Turkish market, prices for scrap of all brands sank by $5 over the week amid difficulties factories selling long products and billets. Having achieved some success in negotiations with scrap suppliers, importers announced an even lower level of purchase prices - $475/mt CIF. However, such prices are not yet acceptable for traders due to the high cost of purchasing scrap metal in the domestic markets of their countries.

In the Asian market, quotations for scrap metal also began to decline following the global dynamics. Local buyers have fairly high stocks of material available, which allows them to temporarily reduce purchases to a minimum. As a result, the cost of HMS1 scrap fell to $470/mt CIF ports in South Korea.

In the near future, quotations of scrap metal will continue to move downward due to the bringing of the balance by importers to the normative level and overheating of the market. The increase in supply from the US and EU exporters will also exert pressure on prices. However, the decline in prices will not be significant - low rates of scrap collection in the United States and high prices in the domestic markets of the largest exporting countries will limit the scale of the decline. The forecast range of prices for scrap for the current week is $485-495/mt CIF.

Source: "Ukrpromvneshexpertiza"