Prices of metallurgical raw materials in recent years, as a rule, did not experience strong fluctuations. But at the moment everything is seen as uncertain and hazy. On the one hand, weak demand is putting pressure on markets, including in China, where new covid cases set a record. On the other hand, the decline puts a limited supply. This can be regarded, above all, as a typical situation for the European scrap metal market.
According to European companies, scrap collection volumes in the region have fallen sharply. Therefore, a significant decrease is no longer expected in raw material prices in the region. Turkish steelmakers, who receive new orders and start to replenish their scrap stocks, have to pay more for this. The decline last month started to increase due to scrap collections and changing weather conditions. Recent deals in Turkey strengthened the scrap's upside signal. However, this trend may not be sustainable due to ongoing economic instability.
In Asia, buyers of scrap metal from Vietnam and Bangladesh have disappeared from the radar, while offers for this raw material are falling in Japan and South Korea. Here, it still seems difficult to rely on overall recovery. In China, more and more regions are coming under quarantine restrictions. Therefore, the prices of steel products and metallurgical raw materials are not falling and scrap metal is generally becoming more expensive, but steady growth is not happening as reflected in the data.
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