Having stayed away from scrap bookings for a long time, last week all Turkish mills again bypassed ex-deep sea purchases.
The Turkish mills had covered their scrap requirements well into the future with their previously booked ex-deep sea scrap tonnages, in addition to their purchases of ex-short sea scrap. However, in the coming weeks the Turkish producers are expected to recommence active bookings. In this context, other scrap importing countries have all focused on the first movement towards scrap purchases to be made by the Turkish mills.
Last week, scrap prices indicated a rise in the US domestic market. Bundle prices increased by around $110/lt from June levels, whereas high quality shredded scrap prices rose by around $40/lt. As regards the European domestic market, in the absence of exports over a long period, scrap supplies have climbed. On the other hand, with the gradual beginning of the summer holiday period and the carrying out of some overhauling works, a decrease has been observed in the demand for scrap. With prices having slightly declined, all eyes have started to focus on the Turkish mills' purchasing policies.
There is a limited number of scrap offers based on the demand situation in the Turkish market. It is estimated that the ex-deep sea scrap suppliers, who have not been able to do business for quite a while now, may reduce their prices. With no official price offer having been heard, it is estimated that the price of ex-deep sea HMS I/II 80:20 scrap is varying in the range of $690-710/mt CIF Turkey.
As regards ex-Black Sea A3 grade scrap, the price range is getting wider according to the seller's position. Some bookings were concluded at the level of $640-670/mt CIF Turkey last week.
Meanwhile, it is almost impossible to express a price for ex-short sea (Israel, Algeria and Lebanon) scrap. The prices are again varying at different levels according to the seller's position. Although the price for HMS I/II 70:30 scrap has been in a range of $585-590/mt CIF Turkey in a few bookings heard, it is reported that some suppliers in difficult situations can even go below these prices.
In the following weeks, the Turkish producers are expected to start their scrap bookings for September shipment in order to meet their long products exports, which are maintaining their strength.