Global scrap prices remain at $655/t for the second week in a row

Prices for HMS ½ grade scrap at the Turkish market for March 21-28 remained at a level of the previous week – $655/t. Thus scrap quotations stayed at the same level for the second week in a row. It is shown by the Kallanish price indicator.

The scrap market in Turkey is frozen at the same level, as buyers, and sellers disagree on the normal price. Buyers insist on lowering the price, having some time to spare, since the raw materials for April are almost bought, and the sellers are not giving up, considering the price reduction unacceptable.

Record high prices for raw materials in Turkey are explained by the rising demand for Turkish products in order to replace Ukrainian, and Russian semi-finished products, including pig iron, and rolled steel, after Russia’s invasion in Ukraine, and the shutdown of mostly steel plants.

The market was quiet last week, but may resume activity this week, notes the representative of the Turkish plant. Sellers are not going to reduce the price as the consumers have no chances due to low scrap inventories. At the same time, US companies are not looking to sell raw materials for export as they expect an increase in domestic demand for April.

Turkish sources indicate that price will be stable until the start of plants to start ordering supply for May. The real price adjustment will take place after the resolution of the situation in Ukraine, but so far there is no room for its change.

As a reminder, prices for HMS ½ grade scrap at the Turkish market for March 14-21 increased by $5 compared to the previous week – up to $655/t. Thus, scrap quotations were at the record high since the start of the price tracking for the third week in a row.