The Turkish scrap market, which started to see an uptrend in the third week of February, is maintaining its rising trend in parallel with the domestic billet and longs markets. In the context of this very rapid upward movement, prices at the end of given days are registering increases compared to the morning levels. In the markets, where each and every new booking level is higher than the previous one, it is difficult at any given time to pinpoint the precise level which actual prices have reached. All eyes in the market are directed towards the first booking price to be heard from companies currently looking for purchases.
Turkish mills, who are trying to accelerate their purchasing activities given the commencement of the uptrend in the scrap markets, are facing difficulties in finding offers due to the withdrawal from the market of suppliers who hope to make greater profits by selling at a later stage. It is estimated that the price of HMS I/II 80:20 scrap, which exceeded the level of $460/mt CFR in the latest scrap booking heard last week, will soar to the level of $480/mt CFR under the impact of the high exchange rate in ex-continental Europe scrap bookings. The booking levels heard from Turkey's rival markets as regards ex-deep sea scrap have already exceeded $480/mt CFR (corresponding to the Turkish market).
The same situation applies for ex-Black Sea A3 grade scrap. The rising prices, in addition to the low availability of scrap allocated for exports, have lessened the number of offers from the region in question. As of today, it is estimated that offers are at around the level of $470/mt CFR.
Some market players, who are taken aback by the daily price increases for both billet and long products, have even begun to suspect that scrap prices may easily soar to reach the level of $500/mt CFR in the event that the present rate of increase continues.