Last week, transaction activity in the import scrap market in Turkey was lively as in the previous week. Ex-deep sea deals concluded last week for HMS I/II 80:20 scrap were in the range of $231-240/mt CFR. Two ex-Baltic deals were concluded in the same period for HMS I/II 80:20 scrap at $230/mt CFR and $233.75/mt CFR, respectively. The slight difference between the prices is due to different shipment dates.
Ex-Baltic scrap offers to Turkey are currently in the range of $230-231/mt CFR. Meanwhile, market players are wondering how ex-Europe scrap prices will trend with the return of local scrap suppliers to the market with the approach of the end of the holiday season in Europe. On the other hand, scrap collection costs are expected to rise in Europe due to the euro losing strength against the US dollar. Last week, it was heard that US-based scrap suppliers were among the sellers who were in contact with Turkish steel producers to conclude new deals. US suppliers concluded deals in Turkey for HMS I/II 80:20 scrap at $240/mt CFR in the given period, though they have reduced their offers to $230/mt CFR this week.
Market players state that scrap suppliers are eager to conclude deals to the Turkish market this week, since scrap prices are likely to move on a downtrend in the coming period and because the waiting periods for scrap cargos at ports belonging to some deep sea scrap suppliers have almost expired. Under these conditions, Turkish scrap buyers appear to be in an advantageous position in their negotiations with scrap suppliers.
Turkish buyers with immediate scrap needs prefer cargos with short delivery times even though they are more expensive than cargos with longer delivery times.