With the scrap purchases being performed by the Turkish producers for almost two weeks now and due to the commencement of purchases by the Far East, scrap prices are currently registering an uptrend.
As a result of the latest deals concluded at $295/mt CFR by Far Eastern producers for ex-US HMS I/II 80:20 scrap, ex-US scrap offers have also been registering an uptrend in the Turkish market. With demand considered to be strong in the export markets as well as in the local market in the US, a decrease in ex-US scrap prices seems impossible as the scrap supply volume is not so strong. After the purchase activity in Turkey last week at the price levels of $253-255/mt CFR Turkey, it is heard that ex-US offers for HMS I/II 80:20 scrap are this week at around $260/mt CFR.
Meanwhile, ex-continental Europe scrap offers also remained unchanged in the past week. In the latest deals, Turkish producers have continued to conclude purchases of ex-continental Europe scrap at the price level of $246/mt CFR Turkey for HMS I/II 70:30 material. On the other hand, a booking for a single scrap cargo ex-Denmark composed mostly of shredded scrap and HMS I/II 90:10 has been concluded at $252.75/mt CFR Turkey.
Ex-Black Sea offer prices for A3 grade scrap have been indicating a lack of stability. Last week, as a result of the price decline of some suppliers (due to concerns that the Turkish producers would step back from the market), prices again softened to $240/mt CFR Marmara. It is reported in the current week that prices have risen again depending on the price strategy of the suppliers and are now in the range $240-255/mt CFR.
Turkish producers are still in the market seeking to buy scrap. It is expected that some further scrap deals may be heard in Turkey this week.