Last week (April 2-9), scrap quotations rose in all regional markets due to continued of restocking by importers and limited supply of American raw materials. In the Turkish market, the average market value of HMS 1&2 (80:20) scrap was $430-440/mt CIF. In the previous week (March 26 - April 2), the range of quotations was at the level of $425-435/mt CIF.
In Turkey, the number of transactions has increased, but the tactics of diversifying the sources of scrap supply, used by large importers, allowed them to slow down the rise in prices. Local metallurgists were actively purchasing scrap on the domestic market, where its cost has remained stable over the past few days. In addition, more and more buyers are wary of purchasing raw materials with long delivery times, as they fear overstocking of warehouses on the eve of Ramadan.
In the Asian market, prices also went up. The cost of HMS1 scrap rose to $430/mt CIF. The rapid recovery in the cost of steel raw materials has led to more active negotiation of local metallurgists with suppliers of steel billets. As a result, interest in purchasing large quantities of scrap is gradually dying out.
In the coming month, export quotations for scrap metal will gradually decline against the backdrop of weakening demand for long products, lower prices for iron ore and increased supply from suppliers from the US and the EU. Quite high stocks of raw materials at the largest importers will also have a negative impact on prices. The forecast range of scrap prices for the current week is $435-445/mt CIF.
Source: "Ukrpromvneshexpertiza"
