Scrap markets have risen this week

Scrap markets, which have remained stable for the last three weeks, have indicated an increase this week. Turkish mills, which spent the week monitoring the developments in the market and evaluating the offers, have not been active in their purchases this week. Different offers have been heard from Black Sea scrap suppliers who believed that the market would decline at early this week or who have not long been active in the market due to the weather conditions. Black Sea scrap bookings for small quantities have been concluded in a range of $236-239/mt CFR Turkish ports. Apart from these bookings, Black Sea scrap suppliers, which gave offers for large amounts, have kept their offers at $245/mt CFR Turkish ports. In the bookings concluded at the beginning of the week, shredded scrap ex-UK was booked at $245/mt CFR and HMS I/II (80:20) was booked at $240/mt CFR. These levels are similar with the prices of the previous week. The offers through the middle of the week have indicated increases. European scrap suppliers are heard to have drawn their offers at $236/mt CFR Turkish ports for HMS I/II 60:40 at the beginning of the week, with the expectation that the prices would increase further. The fact that European steel mills are active in scrap purchases and that they accept higher prices is another issue that worries Turkish mills. At early this week, Italian mills have concluded shredded scrap booking at $250/mt CFR, and A3 grade scrap ex-St Petersburg booking (which also includes 10,000 mts shredded scrap) at $253/mt CFR. The latest booking has been concluded at $255/mt CFR for shredded scrap ex-US. The fact that weather conditions in Black Sea have not softened yet and that the VAT regulation is creating a disadvantageous position for the exporters have caused a decline in scrap exports from Black Sea. On the other hand, SteelOrbis has heard that inventories of deep sea scrap suppliers are not strong. Certain mills that have not completed their April purchases yet, may face troublous days. Weak supply and the price increases may create a dangerous position for scrap markets.