Global scrap metals trading witness lacklustre sentiments in June

LONDON (Scrap Monster): Lacklustre sentiments prevailed in scrap metal markets worldwide in June except for some excitement in Turkish market in the beginning of the month, according to a monthly review by The Steel Index (TSI).

"Scrap prices in both India and the US traded within tight bands, with the US moving US$3/long ton at most, and India trading around US$490/metric tonne throughout the month of June. However, Turkey mixed excitement with boredom, as large trades at the beginning and end of the month were offset by a quiet middle period. Despite the bookings made at both ends of June, the price eased off by US$13/t from the month’s early high, TSI review said.

Fears over Greek debt contagion caused steel buyers to hold on their purchasing, though Turkey’s strong domestic construction market fell back less. Falling steel prices which could be found around the world, were less pronounced in the Turkish domestic market. Monsoon season in India has slowed spot containerized scrap, but stable demand is keeping the price close to the year’s high.

The US market was mostly flat, despite a flurry of trades reported throughout the Midwest region. Early spreads between trades widened on those of May, yet the volume-weighted average of reported trades saw TSI’s US benchmark remaining stable month-on-month.This trend continued into June, with a slight easing as falling steel prices put pressure on mills to lower their bids for scrap. Sentiment amongst producers and recyclers turned negative but the few transactions recorded stayed within a tight range. Market actors were keeping an eagle eye on what was happening at the East Coast export yards.

Indian scrap import prices continued the trend from May as June started, managing another incremental increase, rising US$1/metric tonne for the third straight week. The upcoming rainy season was dampening expectations and transaction frequency into India was dipping.

The second week of June saw steady pricing levels, though transactions pointed higher. Nevertheless, rains were starting to impact on the construction industry and thus on long product producers.

This led to the prices dipping slightly on the following week, about 0.4%, as traders became unwilling to commit to large quantities of scrap. Traders and mills started to eye falling prices in the US and EU as they looked to find some quick scrap deals, TSI Review said.