Ferrous Scrap Price Levels Reacted to Slow Finished Goods Market

In May, the levels of supply of scrap metal from the US, Europe and the CIS decreased by $ 5-7 per tonne. Exporters shipping scrap metal from East and West Coast ports were encouraged to embrace aggressive pricing stance in April, backed by the strength of the domestic market and mistakenly suggesting a resurgence in Turkish demand.

However, the positive sentiment was short-lived. The availability of inexpensive semi-finished steel material and the strength of the dollar have impacted scrap prices and tonnage, particularly in supply to Asian customers. Slow demand for finished goods in the Middle East is putting pressure on Turkish factories for additional discounts.

During the last week, the price level dropped from $ 360-365 per ton, FOB, Rotterdam to $ 350-355 per ton. Similarly, scrap offers fell by the same amount to $ 355 per ton, CFR, Turkey from $ 360 per ton.

Taiwan's electric furnace mills stubbornly pursued a conservative purchase of scrap during April due to the recent slump in steel prices. As for May, the tonnage of imports is projected to decline due to the planned production cuts.

In the difficult conditions of doing business in the South Korean steel market in May, Korean importers are expected to continue their wait and see attitude. At the same time, the current initiative of American suppliers to raise prices is viewed as untimely and unproductive and will only facilitate purchases from alternative sources.