Last week (August 6-13, 2021), scrap prices sank in all regional markets due to the continuing weakening of demand for rebar and wire rod. In addition, many factories have begun to reduce their capacity utilization, which negatively affects the demand for scrap metal.
In the Turkish market, raw material prices have dropped to $ 450-460 /t CIF for HMS 1 & 2 (80:20). At the same time, demand prices are being announced lower and lower every day. So, after the latest deals, large plants announced their readiness to purchase large consignments at a cost not exceeding $ 445 /t CIF. However, given the continued high purchase prices on the domestic market of the US and Germany, such quotations are still premature and cannot be accepted by most suppliers.
In the Asian market, quotes of raw materials are moving down. American suppliers have increased their supply in this direction due to the failure to sell scrap in Turkey. At the same time, the demand for scrap is low due to the presence of high stocks from South Korean and Taiwanese importers. The average price for HMS1 scrap was $ 440-450 /t CIF ports in South Korea.
In the near future, export quotations for scrap metal will decline due to the presence of high stocks and weak demand for rolled products. 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 forecasted range of scrap prices for the current week is $ 450-460 /t CIF.