SCRAP MARKET ROUNDUP FROM MEPS

Negative price sentiment transpired in four of the eight markets surveyed by MEPS last month. Domestic transaction values fell in Taiwan, India, South Africa and the European Union. Positive price growth materialised in Russia, China and Japan. Average gains in these markets ranged from 1.4 percent to 12.5 percent. Different price scenarios developed in the three grades tracked in the United States.

In China, domestic steelmakers issued higher purchasing prices in early April, due to tighter supply, low scrap dealer inventories and a recovery in billet quotations.

Taiwanese mills operating electric furnaces adopted cautious procurement strategies in April. Demand for finished long product forms remains fragile.

Purchasing prices in Japan increased in April, following a tightening in domestic supply. Scrap generation remains low. Electric steelmakers replenished stock levels ahead of the “Golden Week” holidays. The country’s major scrap yards focused on supplying their requirements.

Turkish steelmakers purchased scrap sporadically in April. Demand for finished steel products remains low. European material was less attractive due to the Euro’s strength.

Effective selling figures in the US domestic market were less volatile in April. Local steelmakers had mixed success in negotiating lower prices. Looking forward, quotations for HMS1 and shredded scrap grades are forecast to soften in May. Downward pressure is expected from improved collection rates and high stock levels at export yards.

Source: Semi-Finished Steel & Scrap Review