Prices for scrap metal in Asia and the CIS will fall - Meps

The difficult market conditions in India and the uncertainty in negotiations on the October supply of scrap metal faces exert pressure on prices. Variable successes of secondary production steel on the continent and attempts to shift the burden of additional expenses for their customers reduced the number of orders for DRI steel. This is stated in the message of the British consulting company Meps.

Negative moods reign in the Japanese scrap market. Local merchants predict a decrease in prices in October, after the decision of the company Tokyo Steel, reduce the purchase rates by scrap metal at all its five plants in Japan. At the same time, the rest of the electrometallurgical plants also seek to reduce scrap costs.

The previously expected construction season in Russia, reduction of exports, problems with offshores and uncertainty in domestic markets, created a tense situation with the sale of metal products in the CIS. In addition, Turkish importers expect to reduce prices for metal products from Russia and Ukraine against the backdrop of cheaper offers from Europe and the USA. In this situation, metallurgical companies can begin a reduction in production and, above all, such energy -consuming as electrometallurgical and, accordingly, reduce the purchase of scrap metal.