Over the past week (January 22-29), ferrous scrap metal quotations were rapidly declining in all markets. Exporters are forced to make significant concessions as demand has dropped to a minimum. The price range in the Turkish market has shifted to $400-410/mt CIF from $435/mt at the previous week.In the Turkish market, weak demand for rebar and wire rod is exacerbated by large inventories of importers. In addition, supply from Russian and European exporters continues to increase, which puts pressure on prices. In new negotiations, importers set lower bid prices, which are usually immediately accepted by suppliers.
In Asia, the situation is unfolding in a similar way – demand for long steel is deteriorating, forcing major producers to reduce production capacity and reduce the purchase of raw materials. The situation is also aggravated by the growing supply of cheap scrap metal from Japan. HMS1 scrap quotes were $420-440/mt CIF.
Ferrous scrap quotes are expected to decline in all regional markets due to weakening demand for long products and high inventories from importers in Turkey and Asia. Also, the low profitability of trade in final products will also put pressure on the cost of scrap metal. The forecasted range of scrap prices for the current week is $390-400/mt CIF.
Source: "Ukrpromvneshexpertiza"
