Last week (October 22-29), world scrap prices continued to grow, although the growth rate slowed down significantly against the backdrop of a situational increase in the supply of raw materials. In the Turkish market, scrap HMS 1 & 2 (80:20) has risen in price to $ 505 with delivery, which is $ 5 more than a week earlier.
Metallurgical plants were actively purchasing large consignments of raw materials, fearing further price increases, and also having a significant open demand for scrap metal for the next month. Suppliers rushed to raise quotes to $ 515 per ton, but such prices turned out to be unacceptable for the majority of buyers who want to wait for a clarification of the further development of the situation in the finished steel segment.
On the Asian market, there is a rise in the price of scrap of all brands. The most active are importers from South Korea, which have not yet brought stocks to the standard level. In addition, buyers have begun to build up stocks for the winter, which contributes to an increase in demand in October-November. As a result, the cost of HMS1 material increased to $ 490-500 per tonne in South Korean ports.
In the near future, export prices for scrap metal will increase due to the replenishment of stocks by the largest buyers and the creation of reserves for the winter period. The quotes will also be supported by the dwindling supply of raw materials from American and European suppliers, who are experiencing a shortage of scrap in the domestic markets of their countries. The forecasted range of prices for scrap this week is $ 500-510 per ton.
In Ukraine, the remains of scrap in the warehouses of metallurgical plants fell to 177 thousand tons. Last week there were 207 thousand tons. The stock of scrap metal in days of operation is 21 days, which is 10 days higher than the standard value. The highest reserves are at MMK im. Ilyich - 42 days. The lowest - at Elektrostal - 4 days.
In the near future, scrap quotes on the domestic market of Ukraine will move horizontally due to a weakening demand for long steel and a slowdown in the growth of scrap prices in the world. The forecast average price for the current week is UAH 8,700 per ton.