After concluding some
scrap bookings before the end-of-Ramadan holiday, Turkish buyers'
scrap demand has appeared weak in the current week. Slack demand in the steel billet and finished steel markets and the softening price trend for
scrap are causing Turkish steel mills to remain reluctant to conclude new
scrap bookings.
In Turkish mills' latest ex-
US scrap transactions, the price of HMS I/II 80:20 was at $408/mt CFR. As of today, August 28, ex-
US HMS I/II 80:20 offers to
Turkey are standing at $405-410/mt CFR. However, it is learned from market sources that Turkish mills' price expectations do not exceed $400/mt CFR.
On the other hand, towards the end of last week a Turkish mill had bought an ex-
UK HMS I/II 80:20
scrap cargo at $403/mt CFR. Moving to this week, no new ex-
Europe scrap offer has been heard so far in the Turkish market. Although the euro has shown some strengthening against the
US dollar lately, this is not expected to have a significant influence on
scrap prices, since European
scrap prices have recently being set by using ex-
US scrap prices as benchmark prices.
Turning to the Black Sea market, ex-Black Sea A3
scrap prices are currently above Turkish mills' expectations.
Scrap collection prices in Romania are at $365-370/mt, while A3
scrap offers from Romania to
Turkey are expected to be above $405/mt CFR. Besides, some ex-Russia A3
scrap offers to
Turkey are reported to be standing at $410/mt. However, the price range of $405-410/mt CFR is not acceptable for Turkish mills and even offers of $395/mt CFR have failed to gain acceptance among Turkish buyers.
Approaching the end of August this week, the
scrap market is not expected to witness significant movements. However, the market is foreseen to gain more clarity in the first days of September, when
Europe returns from its holiday and as
US domestic
scrap prices come to light.