World scrap prices fell by $60 last week

In Turkey, during the week of April 18-25б HMS 1/2 scrap prices fell by $60 compared to the previous week, to $570-575/t. Scrap prices are declining for the fourth week in a row after a sharp rise to $655/t, Kallanish price indicator shows.

Scrap prices in Turkey have fallen as recyclers have sharply lowered their activities. Factories continue to put pressure on suppliers to lower prices in May even more. Scrap prices returned to the level of early March, when the hype in the scrap market was just beginning.

In addition, cheap Russian billets and China’s aggressive entry into the export market create the pressure on scrap prices.

Russian billets prices in Turkey are still lower than those from other countries. The Russian Federation is actively dumping, so puts the pressure on the prices in the domestic market of the MENA countries, as well as in Asia and Turkey.

Prices for finished products are falling because of lockdown in China. Market is also undermined by the previously released statistics of China’s GDP for the first quarter with results below expectations.

Suppliers had to lower prices this week after the Izmir plant ordered US scrap at a price close to $590/t for mid-May shipping. In addition, the market now knows that American processors intent to reduce scrap prices in May.

Turkish factories still need about 10 shipments of scrap metal with delivery in May. At the same time, it is too early to start purchasing raw materials for June.

Steel producers are afraid of such a sharp drop in scrap prices, as they are still using raw materials ordered in March at a price of $645-$650/t, so they first need to sell products made from this scrap at a correspondingly high price.

Earlier GMK Center reported, that scrap prices in Turkey decreased by $16 during the week of April 11-18, to $635/t. Thus, scrap quotes decreased for three weeks in a row.