World scrap prices returned to decline after two weeks of growth

Prices for HMS 1/2 grade scrap in the Turkish market for the week of July 11-18 decreased by $10 compared to the previous week – to $400-408/t. Thus, scrap quotes returned to the decline after two weeks of growth. Before scrap prices fell for 13 consecutive weeks from $655/t.

Kallanish price indicator informs about it.

Scrap prices in Turkey were at $410/t for almost the entire last week, but on Monday, July 18, they collapsed. Trades at the beginning of the week brought down stable, holiday prices.

The stability of quotes over the past week is due to holidays in Turkey. Trade remained unhurried, and prices remained unchanged. Market participants expected that prices could rise from July 18, but this did not happen.

The recent increase in scrap prices was due to significant rebar sales by Turkish mills. The further situation in the secondary raw materials market also depends on the demand for rebar and other steel products.

Turkish factories still have to buy more scrap for August, but no price boom is expected. In addition, strong demand for scrap in other markets supports import prices in Turkey.

Already at the beginning of this week, exporters had to adjust the working price level to $400/t due to pressure from Turkish buyers. Thus, suppliers from the UK, the EU and the Baltic countries were eliminated from the market. Sellers from the USA agree on the these prices.

At the same time, there is a low inflow of scrap to Turkish shipyards, so there is no excess of raw materials, which can result in price increases at any time.

As GMK Center reported earlier, scrap prices in Turkey for the week of July 4-11 increased by $30 compared to the previous week – up to $410/t. Scrap quotes rose for the second week in a row after a 13-week decline, when prices fell from $655/t.