In the Turkish market, HMS 1/2 scrap prices decreased by $5/tonne or 1.1% from the previous week to $455-460/ton between 13-20 March 2023. The upward trend in prices, which has been going on for the last three weeks, has stopped.
With the slowing of demand in the Turkish scrap market and the high level of supply, steel producers are stopping their purchases to buy raw materials at lower prices.
Since there is no shortage or high demand in the market in the short term, it is not possible for scrap prices to increase under current market conditions. Most likely, suppliers will gradually succumb to consumer pressure and reduce the prices of raw materials.
Scrap metal demand in Turkey in March affected the price increase in Germany. As of mid-March, scrap prices in Germany increased by €10-30/t from February to €385-395/t. This trend is expected to continue for a few more weeks.
The same situation is observed in Austria. Since the beginning of the month, scrap prices in the country have increased by €20/ton, depending on the brand, reaching €385-400/ton. Scrap prices on the Austrian market increased for the first time since the beginning of the year, but demand for local raw materials decreased in March.
Scrap prices in Europe are expected to increase in March as demand from Turkey and a major resumption of European steelmaking capacity will increase the number of offers in the market.
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