In May, the price of scrap metal on the world market is expected to decrease

Last week (April 23-30), the prices for scrap metal on the world market remained unchanged, although most of the deals were nevertheless concluded closer to the upper border of the price range $420-430/mt CIF. In the previous week (April 16-23), the range of quotations was at the level of $425/mt CIF.

Exporters are pushing for higher deals as they have limited supplies of raw materials. At the same time, buyers do not intend to purchase scrap at higher prices due to weak demand for rolled products and sufficient stocks of raw materials in warehouses.

In May, export quotations for scrap metal will decline under the negative impact of the deteriorating conditions on the long-rolled steel market and an increase in supply from American and European suppliers. In addition, the expected drop in the cost of iron ore raw materials will lead to cheaper production of pig iron, which is a traditional substitute for steel scrap. With sufficient stocks available, importers will enter the market only when absolutely necessary. As a consequence, the initiative in pricing will be entirely in the hands of the buyers. The forecasted range of scrap prices in May is $400-425/mt CIF.

Source: "Ukrpromvneshexpertiza"