Despite Ramadan holidays, during which Turkish scrap buying reduces, prices of scrap remained firm last week. The stability is derived on seller’s expectation that Turkish steel mills will return to market next month after holidays.
In addition, the activities have already started in Europe after the vacations and slight pick up is bound to take place in domestic buying.
Moreover global scrap market is kept in form by active demand in Eastern Asia, which continues to buy at prevailing levels as they expect their domestic demand to rebound after rainy season.
Export activity furthers the prices increase in the US domestic market. In August the prices for main kinds of scrap increased averagely by USD 20 per tonnes to USD 30 per tonnes. Similar growth is expected in September.
The demand for scrap during the nearest several months will be higher than the supply. Steel output after the summer decrease is expected to grow all over the globe, whereas there is no new scrap sources available.