During the one-week-long Ramadan holiday last week, Turkish mills concluded some
scrap bookings, with prices remaining at previous levels in these bookings.
In the bookings in question, mostly ex-
Europe, a single cargo of 21,000 mt of HMS I/II 70:30
scrap was priced at $441/mt CFR
Turkey, while another
scrap transaction of a mixed cargo including 27,000 mt of HMS I/II 75:25
scrap and 3,000 mt of bonus grade
scrap was concluded at $444/mt CFR
Turkey.
In the past week, Turkish mills have not concluded any ex-
US scrap bookings. In the meantime, domestic
scrap prices in the
US for September are strongly expected to remain at price levels effective for August. However, SteelOrbis has also been informed that some regions in the
US may see a slight increase in
scrap prices. Although there has not been any ex-
US scrap offer heard in
Turkey so far, ex-
US HMS I/II 80:20 offers for
Turkey are expected to stand at $470-475/mt CFR.
Ex-Black Sea
scrap prices vary depending on their origin. In
Romania,
scrap collection prices have reached $430-435/mt. Considering these collection prices, ex-
Romania A3
scrap offers are not likely to remain below $470/mt CFR. However, Turkish mills are not expected to accept the price level of $470/mt CFR for A3
scrap. On the other hand, ex-
Russia A3
scrap offers to
Turkey are at $455-460/mt CFR. As for ex-Baltic
scrap, during the Ramadan holiday a cargo consisting of HMS I/II 80:20
scrap and shredded
scrap was transacted at $469/mt CFR
Turkey.
The
scrap market was expected to revive in September, after the Ramadan and summer holidays. However, uncertainties in the financial markets still prevail. If finished steel demand improves in September as anticipated, it is thought that Turkish mills will continue their
scrap bookings. For now, since the markets have yet to gain clarity, Turkish mills are assessing
scrap import offers, but they are not making aggressive
scrap purchases for the time being.