Imported scrap prices, which had risen rapidly with the momentum in global markets, unexpectedly changed direction and started to fall again. While the short-lived increase created uncertainty in the markets, new strategies started to take place among sellers and buyers.
Türkiye's imported scrap purchases surged again two weeks ago with the effect of the acceleration in global markets, rising by around $20-25 to $380-390. After the rapid rise, prices started to fluctuate again.
LME scrap prices, which were around $410 about two weeks ago, have hovered around $370 these weeks. According to market commentators, “In addition to the increase in the prices of raw materials and finished products, the expectation of an increase could not be sustained for sellers unless the sustainability of prices is in direct proportion to demand.” Prices started to fall again at the beginning of last week.
According to market commentators, US/Baltic cargoes were below $380, while on the European front, offers were heard between $370 and $375 following lower local mill purchases, with limited volumes sold. On the buyer side, the US east coast was updated with an average increase of $5.
Baltic exporters lowered the level below $380 as Turkish mills were unwilling to buy at $380. Prices were heard between $360-370 on the short sea side again, moving down from the $373-374 range on the short sea side, following the $378 deals to the Marmara region in the past weeks. North port, on the other hand, was flat this week.
A scrap trader in Europe said, “All the local mills in Europe are worried at the moment as the crisis in the banks continues. On the one hand, the dumping charges are also being considered. Production was much better in the summer, but then the price differential and energy costs started to hamper the recovery in Europe's domestic market. The German steel market leads Europe, but the situation there is not very good either, either because of wages, payments or lack of demand. Things are constantly changing and there are stock-outs, this has been the situation for the last 8 months.” The Polish scrap market is currently unstable due to high energy costs. Prices have been slow this month, falling by €10-20.
India's imported scrap purchase prices are expected to continue to fall. It is said that there is a decline of $25 in India and for many reasons, deals of $360-370 for Hms scrap could be heard.
With low sales and manufacturers postponing their purchases, it is expected to continue to be heard for a while at $350 for small cargoes and $365-370 for larger cargoes.
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