With Turkish steelmakers continuing their scrap bookings since last week, scrap prices have continued to increase both in the international markets and in the local Turkish market.
SteelOrbis has learned that, in the latest concluded scrap transactions, ex-US scrap prices have continued to increase, with prices of HMS I/II 80:20 scrap reaching levels of $445-450/mt CFR. Since US domestic scrap demand is still at high levels, Turkish mills are able to come across only a limited number of ex-US scrap offers in the market.
SteelOrbis has been informed that price levels in the latest scrap transactions from Europe to Turkey have reached $440-445/mt CFR Turkey, while there is limited scrap availability in Europe due to seasonal factors which continue to affect the region. It is reported that European steel producers are able to buy local scrap supplies at €300-315/mt (approx. $400-420/mt).
It has been learned that the latest ex-Black Sea A3 scrap transactions to Turkey have been concluded at $443-445/mt CFR. Following these transactions, new offers are reported to stand at $445/mt CFR. Given the expectation that Turkish mills will continue their scrap bookings, as well as reports that A3 scrap availability in particular is limited, the scrap market is expected to maintain its strong trend for another while.