Having concluded significant scrap purchases in the previous two weeks, Turkish producers have made a calm start to the current week. This week it is observed that Turkish producers (having replenished their stock levels) are now in no great rush to purchase scrap, but are focusing instead on sales of their finished products.
Meanwhile, it is expected that ex-Europe scrap in particular will likely offer advantageous price levels to Turkish producers. The latest deals concluded last week were at the price level of $277-280/mt CFR Turkey for ex-Europe HMS I/II 70:30 scrap. However, it is thought that this price range may decline a little this week with the euro currently standing at below US$1.30.
No change has this week been observed in the price levels of ex-US deals as compared to last week. In the latest deals, HMS I/II 80:20 scrap was concluded by Turkish producers at $285/mt CFR, shredded scrap at $290/mt CFR and P&S scrap at $295/mt CFR. Demand from Far East producers for ex-US scrap has been keeping US scrap exports alive; however, this demand activity is also preventing a fall in the price levels of US scrap offers to Turkey. Far East producers are accepting $310/mt CIF ($280/mt FOB) for HMS I/II 80:20 scrap.
Turkish producers have not bought Russian origin A3 scrap for a long time now as ex-Russia A3 scrap prices have been at fairly high levels. With ex-Russia A3 scrap at $300/mt CFR in the Turkish market, Turkish producers prefer ex-deep sea HMS I/II 80:20 scrap instead of the ex-Russia material. Although Romania is active in the Black Sea region, ex-Black Sea scrap offers are currently at $280-285/mt CFR Turkish ports.
This week in the Turkish market, unlike recent weeks it is not expected that there will be a lot of news concerning new deals; furthermore, it is possible that the Turkish producers will satisfy their needs with small tonnages of short sea scrap or will avail of the price advantage of ex-Europe scrap, instead of seeking to purchase from the US.