Last week (May 21 - 28), scrap metal quotations increased in all regional markets. In the Turkish market, they were in the range of USD 510 - USD 520 per tonne of HMS 1 & 2 steel scrap (80:20). In the previous week (May 14 - 21), the range of quotations was at the level of 505 - 510 US dollars per ton.
Importers continued to actively contract raw materials against the backdrop of a limited supply and, as a result, fears about the continued rise in scrap prices.
In the Turkish market, the number of transactions remained at the same level. However, importers were already more restrained in concluding deals, as scrap prices began to decline on the domestic market. This gave buyers hope for a possible reversal and import prices in the coming weeks. Despite the signs of a deterioration in the market environment, US suppliers raised prices to $ 530 per tonne of HMS 1 & 2 scrap metal (80:20). But such quotation levels are not accepted by importers.
In the Asian market, the cost of HMS1 base grade scrap rose to USD 500 per tonne including shipping and insurance (CIF), which is the highest value in the previous several years. South Korean importers willingly agreed to bargains at fixed prices, as demand for locally produced rolled products remains very high.
This week quotes for scrap metal will go down due to the replenishment of the balance by importers to the standard level and overheating of the market. The increase in supply from the US and EU exporters will also exert pressure on prices. However, the decline in prices is unlikely to 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 price range for the current week is USD 500-510 per ton of CIF scrap.