Over the week, the average price of scrap in the Turkish market decreased by $5 – to $500/mt

Last week (June 11-18), scrap metal quotations decreased after a discount provided by American suppliers in the Turkish market. The softening of the pricing policy for large exporters served as a signal for a possible early resumption of the fall in the cost of raw materials. As a result, some exporters made concessions to buyers, hoping to sell off at the peak. As in the previous week (June 4-11), quotations were in the range of $495-505/mt CIF. The average price was $500/mt.

There is a temporary lull in the Turkish market. Importers are putting significant pressure on suppliers due to weak demand for finished rolled products locally produced, but suppliers are in no hurry to make concessions, having low stocks of unsold raw materials and experiencing a shortage of supply of scrap metal on the domestic markets of their countries.

In the Asian market, the cost of raw materials also went down. With a fairly high stock balance, South Korean importers tried to make every effort to reduce purchase prices. The average price for HMS1 scrap was $485/mt CIF.

In the near future, quotations of scrap metal will continue to decline due to replenishment by importers of balances to the standard level and overheating of the market. The increase in supply from US and EU exporters will also put 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 for scrap prices next week is $490-500/mt CIF.

Source: "Ukrpromvneshexpertiza"