Scrap markets are moving upwards, prices seek balance
According to the researches and evaluations made by SteelRadar analyst;
The high demand in the Turkish scrap market and the rising prices for the main raw material in Asian countries caused an immediate increase in the indicators of the manufacturers, and American suppliers have already announced their July offers above 400 USD CIF.
Foreign sources comment on our domestic market, "Scrap (HMS 1&2): It was confirmed by Turkish buyers at the end of last week that it is not below the range of 390-395 USD/MT CIF." Based on this comment, commercial contacts were recorded in the first week of June as follows;
It quickly spread in the market, where a Turkish producer's August delivery connection for shred and bonus was an average of $410.
Another Turkish producer is heard to have concluded a deal at $389.5 for June delivery for 80:20.
Based on the latest agreements and negotiations, Turkey's import scrap price average is recorded as $389 for today.
After these agreements, some indicators for the second half of July have predicted that it will increase by 10 USD/MT. Expectations for the new figure to be settled in the global market, 400-405 USD/MT CIF range is considered as the next step where scrap will settle. So, what happened to the local scrap purchasing prices of the factories while these developments were taking place in the imported scrap market?
Many producers in Turkey have been increasing their scrap purchase prices for about 2 weeks. Today, factories in Marmara and Iskenderun regions have increased their scrap purchase prices between 200 TL and 500 TL. According to the SteelRadar analyst, the increases, which are expressed as closing the gap in the foreign exchange balance, indicate that the difference in the import scrap connection is added.
China continues to be the leading role of the market
China's domestic producer Jiangsu recorded in the local market as 2880 CNY/MT for HMS 6-10, ie 403 USD/MT including VAT / 391 USD excluding VAT. While the increase was reflected as $7 in dollar terms, it was reflected as +50 CNY/MT in Chinese sources. These figures are for the first week of June.
Finally, let's talk about China, it shows that prices in global markets have started to rise after China regained momentum in both domestic markets and export offers.
It is expected that the export offers of Chinese suppliers will continue to be directly dependent on the trend of the domestic market. However, in the face of the depreciation of the yuan, it shows that the growth step will not be in the foreground too much, and they can take risks.
Increase in Japan will be felt more clearly in July
On the other hand, new incoming connections at Japanese ports have returned to the range of 345-350 USD FOB. Due to the price increases in the domestic market, prices have increased by at least 10-15$ since the beginning of the month. It was also confirmed by foreign market representatives that Korean producers are ready to approve their purchases of USD 400 CIF (Delivery to Korean Ports) for July delivery.