While the local scrap prices in Turkey are seeing an increase, import scrap prices continue to post a decrease. The Turkish mills started to increase their local scrap purchase prices from the beginning of last week. Even tough at first sight these price hikes were considered as a commencement of activity in the markets, later on it was observed that this activity in question was limited to the domestic market and that the import scrap market registered no movement. While the demand for local scrap continues to be strong, the price for HMS I scrap announced by one mill today has increased up to the level of Ykr 550/kg (approx. $462/mt). It is seen that the Turkish mills are mainly trying to satisfy their scrap requirements by purchasing high quality scrap in the domestic market, which had piled up due to the long-standing stagnation. However, the scrap tonnage in the Turkish domestic market is only able to meet 20 percent of Turkish mills' scrap needs.
Last week, no ex-US scrap booking was heard in Turkey. This week, it is heard that the price levels for HMS I/II 80:20 scrap are standing at around the level of $440-450/mt CFR Turkey.
On the other hand, ex-Europe HMS I/II 70:30 scrap is being offered at $415/mt CFR Turkey.
Moving to Black Sea, it is heard that ex-Russia A3 grade scrap offers are hovering at around the level of $480/mt CFR Turkey. For now, it seems hard for ex-Russia scrap suppliers to do business at the levels in question as these suppliers are insistent on higher levels compared to ex-deep sea scrap prices. What kind of price revision will be made by ex-Russia scrap suppliers, who are having difficulties due to taxes, is a source of wonder for market players.
It is heard that the price for HMS I/II 70:30 scrap ex-short sea, such as Lebanon and Algeria has dropped down even below the level of $400/mt CFR Turkey, and that it is currently being offered in a price range of $380-390/mt CFR Turkey.
Looking at the current activity in the Turkish domestic market, it is observed that Turkish mills' scrap requirements have increased. In addition, it is estimated that this week, or next week at the latest, the Turkish mills will return to the market for their ex-deep sea scrap purchases, should no extraordinary change affect the demand.