According to MEPS- Semi-Finished Steel & Ferrous Scrap Review, Turkish steelworks have been buying scrap material sporadically in October. The intermittent nature of the booking activity has been attributed to negative price expectation and underperforming finished long products markets. Several key importers have been forced to cut their input costs. Currently, buyers in this market are perceived as holding the upper hand in price negotiations. Subdued scrap demand and rising supplies have exerted downward pressure on prices. US scrap dealers have followed their European competitors and issued lower HMS1&2 (80:20) and shredded quotations. Discounts are now being granted to facilitate sales. CIS traders are not interested in trading material in a falling market. Developments in this country are being closely followed by others. The observers believe that deals completed in Turkey will strongly influence prices in other markets.
Russian metallurgical plants have managed to placate the price demands of domestic scrap collectors. 3A scrap purchasing prices have been settled at levels, which are reflective of ex-works finished steel prices and acceptable to the suppliers. This has allowed the mills to continue to stockpile scrap for use during the winter season
In China, October's trading period was shortened by the country's national holiday. Provincial scrap prices are little changed. Several Chinese steelworks have taken advantage of the price stability and have begun to replenish stock levels. Sentiment is mixed regarding scrap buying figures when the re-stocking process is completed. A few traders are focusing on price developments within the finished steel product markets. Others are assessing the impact of the central government's new energy guidelines. Outdated steel facilities are being decommissioned. Chinese importers are observing developments in the global scrap markets. The majority have continued to find the latest import offers unattractive.Nike
No major upturn in ferrous scrap prices yet, says MEPS
Source:Ringier Release Date:2011-02-10 104
You May Like