In September, the world market is expected to increase prices for metal scrap

Over the past week (August 20 - 27), scrap metal quotations moved horizontally. Importers put pressure on suppliers to get discounts of $5-10, however, improved demand for rolled products and reduced stocks of raw materials in their warehouses did not allow buyers to achieve any success. As a result, prices for the basic type of scrap HMS 1&2 (80:20) in the Turkish market remained at the same level - $440-450/mt CIF.

In the Turkish market, demand for scrap increased slightly on the back of a need to replenish stocks by local importers - stocks have shrunk markedly over a period of low business activity in recent weeks. However, a fairly high supply from American and European exporters helped to balance the market.

In Asia, quotes also remained unchanged. Japanese exporters increased the supply of material in foreign markets against the background of weak business activity in the country, however, an increase in purchases of raw materials by Korean and Taiwanese factories allowed traders to avoid a further decline in quotations. The average cost of HMS1 scrap was $435/mt CIF.

In the near future, export quotations for scrap metal will continue to move downward due to a fairly high supply from US and EU exporters, as well as significant difficulties in the sale of billets and rebar. In September, an increase in the cost of raw materials is expected due to the depletion of warehouse stocks at large importers and the expected improvement in demand for finished metal products. The forecast range for scrap prices next week is $435-445/mt CIF.

Source: "Ukrpromvneshexpertiza"