Having concluded many bookings as the month of May began and as prices kept surging, the Turkish producers halted their scrap purchases beginning from the second week of May as their scrap inventory situation started to gain relief. During this period, a very limited number of bookings were heard and various comments were made on the prices. It was seen that the price of ex-deep sea HMS I/II 80:20 scrap, which had risen to the level of $728/mt CIF Turkey during times of robust demand, decreased to the level of $721/mt CIF Turkey in last week's bookings. On the other hand, during the same period, the FOB-based prices were considerably lower than the abovementioned levels due to the rise seen in freight rates.
Most of last week's bookings were concluded by one particular ex-US supplier, all at constant price levels. In the bookings in question, ex-US HMS I/II 80:20 scrap was at $721/mt CIF Turkey, shredded scrap hovered at $726/mt CIF Turkey, while P&S scrap stood at $731/mt CIF Turkey.
This week in the US domestic market, while busheling scrap prices are on an uptrend due to the supply shortage, cut grade scrap prices have decreased due to the sufficient availability on the supply side. Cut grade scrap supply and demand are moving parallel with each other. This situation has brought stability to the scrap offers given to Turkey. This week's offer prices have remained unchanged compared to last week. Any possible softening seen in freight prices could cause a slight decrease in scrap prices.
As regards ex-Black Sea A3 grade scrap, the gap between offer prices is widening according to varying situations of the suppliers. On the one hand, some suppliers, who have cargoes on board ship and do not want to lose money on demurrage, may drop their prices to a level of $670/mt CIF; on the other hand, some suppliers are managing to maintain their levels at $710/mt CIF.
As regards long products, having completed their product sales until mid-September against the background of robust demand and surging prices, the Turkish producers are currently performing scrap purchases for late August shipment. The main factor behind the increase in longs prices is brisk demand, while the principal factor behind the stability in scrap prices is the equilibrium in the supply and demand situation.