Scrap prices, which have registered more than a ten percent increase in April as compared to March thanks to the strong demand, have now increased to $260/mt CFR Turkey. Although fewer deals have been heard in the last week as compared to previous weeks, prices are still moving on an upward trend.
In the two ex-Canada deals concluded in Turkey last week, prices were at $255/mt CFR for shredded and $257/mt CFR for bonus grade scrap. Meanwhile, a Turkish mill concluded a booking for a single cargo ex-continental Europe of HMS I/II 70:30 scrap at the level of $259.5/mt CFR Turkey; the cargo was composed of 3,000 mt of HMS I/II 70:30, 10,000 mt of busheling and 10,000 mt of HMS I. On the other hand, another ex-continental Europe cargo was concluded at $251.75/mt CFR; this cargo consisted of 13,000 mt of busheling and of HMS I/II 75:25.
Although no ex-US offer price has been heard, it is thought that the HMS I/II 80:20 prices are not likely to fall below $260/mt CFR Turkey. It is heard that European market players have shown a willingness to accept the price of $265/mt CFR when they find shredded scrap, as there has been a serious decrease in scrap supply due to the drop in industrial production. As a result, the producers need scrap and so find the abovementioned price level acceptable.
As regards ex-Black Sea scrap, following last week's deal at $255/mt CFR, it is heard that this week's offers are at around $260/mt CFR Turkey.
Meanwhile, ex-Algeria and Libya short sea scrap offers for HMS I/II 70:30 are at around $240-245/mt CFR.
Turkish producers are not expected to conclude so many scrap deals this week. Instead, the Turkish producers are thought to be focusing on the late month price announcements in the local markets of the countries to which they have been exporting finished steel products. It is also thought that the producers will likely decide on their scrap purchases depending on their competitiveness in the countries in question. The scrap purchase strategies of the Turkish producers, which have been shaped in line with finished steel sales for a long time now, are expected to continue to be shaped in the same way for some time yet.