International scrap market continues softening
Market reports from different corners of the world confirm softening of scrap prices. Asian market keeps leading the softening. One of the major scrap suppliers, Kuuasokoski, has recently concluded a new contract with Korean giant steel maker POSCO at just under $300/mt CFR FO level for HMS I scrap, according to market sources. This price level is approximately $30/mt below where the market was by the end of October. Other markets are following similar paths, too. The export prices have softened significantly in the UK, mainly due to the lack, or in other words very low level of the demand from Turkish mills. Traders say prices have softened between $15-20/mt, and due to go even lower. The US scrap suppliers have also not been very happy with the demand for exports. Lack of demand coupled with high freight rates is limiting the chances of sales to overseas mills. Domestic market is not so good in the US either, and prices are expected to soften significantly until the end of the year.