Tight supply supports prices

摘要

Ferrous scrap in several markets traded largely range-bound in mid-October as finished steel prices continue to lag stronger scrap prices. Buyers and sellers were seen in a stand-off as tight supply in the export markets led sellers to expect prices above $330/mt CFR. Buyers continued to resist, targeting prices around $325/mt CFR or lower amid low finished steel prices. On the other hand, lower prices might prevail if mills remained absent in an effort to lower prices to bring them more in line with lower rebar and billet prices, sources said. With the spread between Turkish import scrap and Black Sea billet at its lowest level in more than 14 months, substituting some scrap purchases with billet procurements has become more attractive for rebar producers in Turkey. Since the beginning of September, prices for Turkish import scrap and imported billet prices have started diverging.