International steel scrap market on the rise

Over the past two weeks, there has been a flurry of scrap metal purchases from Turkey. This led to an escalation in the price of steel scrap. International bids as a result reached $ 375-380 per tonne CFR with major buyers in Turkey starting active scrap purchases again.

Turkish businesses are contributing to a typical relationship between scrap steel demand and market price levels. After an initial slowdown in scrap purchases due to exchange rate volatility and poor plant utilization, purchases began when price levels hit a low of $ 345-350 per tonne about a month ago.

Currently, the volume of scrap shipments has improved, which has contributed to an increase in scrap metal price levels in the United States. In addition, this has led to speculation about a further rise in the price levels of scrap for shipment to metallurgical plants. As a result of the buying boom, scrap steel price levels are expected to cross the $ 400 /t mark if the current buying trend continues.

At the same time, imports of scrap from the US by South Korean mills rose 46 percent in February this year, compared with imports during February last year. Japan was the largest source of scrap imports for South Korea. South Korea's total scrap metal imports in the two months were up 11 percent compared with imports in the same two-month period in 2013.