Turkish mills, who concluded only a few A3 scrap cargo bookings ex-Black Sea last week, are staying away from deep sea scrap, opting to wait instead for a further softening in scrap prices.
Black Sea scrap found buyers at $311-318/mt CFR Turkish ports last week. Offers this week are at $310-318/mt CFR level.
There are offers at $305/mt CFR from Israel, Lebanon and Algeria - countries where small-tonnage cargoes are loaded; however, no concluded purchases have been confirmed from these markets.
With regard to deep sea scrap, there was no report of any booking concluded by Turkish mills last week.
On the other hand, markets such as Saudi Arabia, South Korea, Mexico, Malaysia, Thailand and Italy indicate interest in deep sea scrap and there are reports regarding bookings concluded by these markets. This situation results in a decline in the amount of deep sea scrap allocated for other export markets, including Turkey.
Offers in Turkey for deep sea scrap are at $340/mt CFR for bonus quality, at $335/mt CFR for shredded scrap and at $330/mt CFR for HMS I/II 80:20 scrap. Some Turkish mills that have not completed their scrap purchases for July shipments will eventually have to direct their focus to deep sea scrap if the scrap and pig iron quantities they bought from the Black Sea and the local market prove to be insufficient.