Last week,
scrap prices declined to a certain extent in some ex-deep-sea
scrap transactions concluded by Turkish steel producers.
In an ex-US
scrap transaction to
Turkey last week, 18,000 mt of HMS I/II 80:20
scrap was priced at $500/mt CFR, 20,000 mt of shredded
scrap was priced at $505/mt CFR, while the price of 2,000 mt of P&S
scrap was $510/mt CFR. Following the conclusion of this transaction, ex-US HMS I/II 80:20
scrap offers to
Turkey, which were at $510-515/mt CFR, have regressed to $500/mt CFR.
Last week, ex-
Europe HMS I/II 70:30
scrap offers to
Turkey were standing at $489/mt CFR. Although the euro has strengthened against the US dollar this week, this offer level has only dropped to $485/mt CFR. Spanish
scrap buyers have been closely monitoring Turkish
scrap bookings and these buyers also delayed their transactions when
Turkey suspended its
scrap purchases, SteelOrbis understands.
In the Turkish steel market, last week the latest ex-Black Sea A3
scrap transaction was concluded at $480-485/mt CFR. Although the price idea of Turkish mills has remained below $480/mt CFR this week, so far
scrap offers have not declined to this level. Given that the
scrap collection cost in
Romania is currently standing at $460/mt,
scrap offers to
Turkey from
Romania are unlikely to decrease for the time being.
The Turkish mills do not appear to be absent from the
scrap market this week; however, they do want to be sure of actual
scrap prices before moving to conclude
scrap bookings. Some market players anticipate a certain recovery may be seen in
scrap prices this week, while some Turkish producers have been seeking lower
scrap prices for their purchases. By the middle of this week, Turkish steel producers are expected to intensify their
scrap transaction activity and thus the trend in the
scrap market is foreseen to gradually gain clarity.