POSITIVE PRICE SENTIMENT PERMEATES INTERNATIONAL FERROUS SCRAP MARKETS

The European Union ferrous scrap export index moved above 150 in May. Bookings for material were hindered by the uncertainty surrounding the strength of the euro. Several exporters recommenced offering discounts to conclude deals.

The Indian ferrous scrap import indices for HMS1&2 (80:20) and shredded graded material returned above 185, following stronger procurement activity by local consuming groups. Inventories were allowed to run down in March and April. The market is split over the segment’s future price direction. Trading companies are worried about further price volatility ahead of the country’s monsoon season. Traditionally, demand for construction steel is low for the duration of this period.

The Taiwanese ferrous scrap import index for HMS1&2 (80:20) rose above 150 for the first time. Quotations issued by US suppliers were influenced by price developments in the Turkish market. Purchasing prices of local mills operating electric furnaces are forecast to remain stable next month. Planned production is to be lowered due to the need to limit power consumption.

The Turkish ferrous scrap indices for HMS1&2 (80:20) and 3A graded material increased in May. Booking volumes declined after stocks were replenished in the first half of the month. European suppliers issued lower quotations to adjust for the weaker euro. The actions of Turkish importers advanced ferrous scrap quotations in other foreign markets.

Source: Semi-Finished Steel & Scrap Review