Rotterdam price of steel scrap improves into October
2013-10-07 21:01:24 [Print]
LONDON (Asian Metal) 7 Oct 13 - As we move into October, the price of steel scrap in Rotterdam has grown stronger as the global market appears to have stabilised somewhat since last month. The latest prices being reported for steel scrap HMS1&2 80:20 FOB Rotterdam are USD335-340/t. This has increased by USD10/t from the beginning of last week as stockpiles have contracted. A number of sources have noted the improvement in European prices, however, are very hesitant to get carried away with this turn in price as there remains concern that there could possibly be a further depreciation.
The rise of USD10/t in FOB Rotterdam prices is following the trend witnessed in Turkish delivered prices this week for steel scrap HMS1&2 80:20 which were also reported to have risen by USD10/t week-on-week.
A source based in the UK noted that their prices this week were sitting at USD335-340/t FOB Rotterdam for HMS1&2 80:20. “There looks to be a revival in prices this week. However, I do not think that anyone is getting carried away yet as there could still be a further slide this month,” reported the trader.
Although there is some positivity in the market now, with the stalling of rapid depreciation of prices, a number of sources remain wary in the belief that the bottom end for prices is yet to be reached.
“The previously anticipated fall of a further USD5-10/t could still happen, but with reduced demand from Turkey for the next week or so, it is unlikely to occur until later this month,” explained the source.
A second source from Germany reported a range of prices within USD330-340/t FOB Rotterdam for steel scrap HMS1&2 80:20. “Last week, prices did not change particularly, sticking to USD335/t, which represents a positive change in the market,” noted the German trader. Many of those involved in the European market who were small players have been forced to suspend operations and some even leaving the industry as they could not afford to be stockpiling or selling at such low prices.
“It has been a tough few months in the scrap market for sure. Turkey is showing pretty strong demand which is good but elsewhere the consumption of steel needs to improve if there is to be any significant improvements in the market. Hopefully that will come with greater economic development again,” commented the German source.
The rise of USD10/t in FOB Rotterdam prices is following the trend witnessed in Turkish delivered prices this week for steel scrap HMS1&2 80:20 which were also reported to have risen by USD10/t week-on-week.
A source based in the UK noted that their prices this week were sitting at USD335-340/t FOB Rotterdam for HMS1&2 80:20. “There looks to be a revival in prices this week. However, I do not think that anyone is getting carried away yet as there could still be a further slide this month,” reported the trader.
Although there is some positivity in the market now, with the stalling of rapid depreciation of prices, a number of sources remain wary in the belief that the bottom end for prices is yet to be reached.
“The previously anticipated fall of a further USD5-10/t could still happen, but with reduced demand from Turkey for the next week or so, it is unlikely to occur until later this month,” explained the source.
A second source from Germany reported a range of prices within USD330-340/t FOB Rotterdam for steel scrap HMS1&2 80:20. “Last week, prices did not change particularly, sticking to USD335/t, which represents a positive change in the market,” noted the German trader. Many of those involved in the European market who were small players have been forced to suspend operations and some even leaving the industry as they could not afford to be stockpiling or selling at such low prices.
“It has been a tough few months in the scrap market for sure. Turkey is showing pretty strong demand which is good but elsewhere the consumption of steel needs to improve if there is to be any significant improvements in the market. Hopefully that will come with greater economic development again,” commented the German source.
