Last week, in line with the Feast of Sacrifice holiday, Turkish producers took a break from scrap booking activity.
Before the holiday, ex-US scrap bookings of Turkish producers were concluded at $390/mt CFR. With the expectation of a $25/mt price hike in the US domestic scrap market, ex-US scrap offers to Turkey may also increase to some extent. The last reported ex-US HMS I/II 80:20 scrap offers to Turkey at $395/mt CFR are foreseen to at least remain stable or to be slightly higher this week.
While no definite offers have been heard in the market, ex-Europe scrap offers to Turkey for HMS I/II 70:30 materials are predicted to rise to higher levels this week, as compared to the level of $380/mt CFR reported before the holiday.
In the latest reported transaction, ex-Black Sea A3 scrap was standing at $388/mt CFR Marmara. And this week, scrap collection costs in Romania are heard to be at $355/mt. Thus, offers for A3 scrap given to Turkey are expected to stand at about $395/mt CFR.
While the markets have yet to acquire clearer shape, due to the approaching Christmas and New Year holidays, along with the increasing influence of the winter season, scrap prices are expected to follow a strong trend in the coming period.