Spikes in prices for scrap on the world market is a temporary phenomenon - expert opinion
On the world market of steel scrap suppliers increase prices when demand remains largely limited. The volume of sentences falling, and sellers announce the prices only real buyers. Now the trends in the scrap market are largely dependent on sales of steel products. Therefore, the decrease in trading activity during the winter season, current changes in price trends are short-lived, and in the near future possible adjustments to the previous lower level, considers Tatyana Gurtovenko, expert of the state enterprise "Derzhzovnishinform".
So, in the end of October, export prices for ferrous scrap premium HMS 1 & 2 (80:20) on the European market were in the range of 225 - 230 USD per tonne on FOB (loading on Board), for shredded scrap in the range of 225 - 235 USD per tonne FOB on average $ 30 higher than at the end of September.
At the same time, export prices for ferrous scrap premium HMS 1 & 2 (80:20) on the American market amounted to 225 - 230 USD per tonne on FOB, shredded scrap was offered on average for 230 - 235 USD per ton FOB, which is 25 - 30 dollars more than at the end of September.
On the domestic Turkish market saw an increase in the consumption of scrap to local steel producers.
Thus, purchasing prices for raw materials at the end of October increased and ranged from 240 -270 USD per ton. It is expected that Turkish producers will continue to follow General global trends and to increase their purchase price. Meanwhile, the Turkish import scrap market non-ferrous metal increased the activity of buyers.
for their part, European and American suppliers at the end of October already offered a higher price level than in mid-October, though refrained from active sales mainly because of expectations that scrap prices will continue to rise. In addition, suppliers of scrap from the EU and the United States focused on the procurement of raw materials under existing contracts.
Agreement on the scrap from the UK were closed at the highest levels, and prices increased to 250 - 255 $ per ton CFR (delivery). At the same time, the us scrap suppliers, despite the very limited number of raw materials, offering deals prices for premium scrap HMS 1 & 2 (80:20) at $ 260 per tonne CFR and above.