According to US sellers in the import scrap market, no major price changes are expected for July and August. It is said that even if there are potential price increases, they will not be significant and the summer season will probably be closed in this way. On the other hand, it is also rumored that an increase in prices due to scrap collection costs may not create a big impact. Recently, scrap prices have fluctuated upwards and downwards in a narrow range.
Freight prices have risen and therefore scrap buyers are not ready to increase prices. Rebar sales are very slow due to the monsoon season. According to expectations, prices will remain in a similar range until September. At the moment, scrap collection supply is tight and initial views in the US are that domestic trade will be higher next month to try to keep scrap local. South Asia has shifted much more processed steel imports to container markets.
Scrap terminals are reducing their sales due to the exchange rate differential, while the domestic market is experiencing a scrap supply squeeze. There is a view in the market that producers may enter a period of silence for a few weeks to put pressure on the sellers, but it is unclear how long this will remain active in the market. Turkish scrap dealers are not in favor of buying above 380, while sellers abroad are refusing to lower their prices due to cost pressures. Exports cannot show mobility due to the dollar. German scrap dealers have started to hold back in the market. There are also comments that exports are about to exit the market as the euro/dollar rose to 1.09. Some suppliers reported that the market will continue to remain flat at $385-392 for the US, $380-385 for Europe and $387 for the Baltic, but producers are not making firm offers.
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