After delaying their scrap bookings for a long period due to the uncertainty in the finished steel markets and the dropping scrap prices, Turkish producers returned to the market for purchases last week. Scrap prices have continued to decline in the market, in which approximately 15 transactions for deep sea scrap have been concluded.
In the transactions made ex-US, in line with the effect of the very high discharge rate offered, the price for HMS I/II 80:20 has regressed to $370/mt, while the shredded scrap price has moved down to $375/mt.
In the European domestic market, even if scrap prices have declined by €30-40/mt in the past month, scrap supplies are still plentiful, due to the continued weakness of demand. This resulted in a rapid fall in scrap prices, with an increased volume of HMS I/II 70:30 offers seen in Turkey. Even the quick rise in the value of the euro against the dollar could not prevent scrap prices from decreasing. HMS I/II 70:30 offers, which stood at $372/mt CFR at the beginning of last week, regressed to $353/mt CFR this week, with the latest transactions concluded at $355/mt CFR. Ex-Europe HMS I/II 80:20 is currently being offered at $365/mt.
Although ex-Black Sea A3 transactions were concluded at $370/mt CFR early last week, with many suppliers having offers in the market, the price for this material regressed toward the end of the week, when transactions were heard at $360-365/mt levels. While offers for this week stand at around $365/mt CFR, the price idea of the Turkish mills is at $360/mt or even slightly lower.
The Turkish scrap market started the current week with reduced activity, following the bookings made last week. The mills are expected to move cautiously, monitoring the finished steel markets, after having supplied their urgent scrap needs. However, the producers are also expected to start their inventory bookings shortly, in order to meet their needs for winter.