Turkish scrap market

Turkish scrap market, where some kind of activity was observed last week after a long calm period, seems rather silent so far this week. Since Europe is on holiday and there is no buying activity observed in India and Egypt, certain bookings were heard to have been concluded last week in Turkey, which is almost the only country in a buyer-position. Latest deep sea cargo booking has been concluded ex-US at $262/mt CFR Marmara for a cargo composition of shredded scrap, P&S scrap and HMS I/II 80:20 on basis 9,000 mt daily discharge rate. US scrap was available at cheaper prices than European scrap until recently. However, it is thought that local US scrap market has rebounded this week, and with the impact of freight rates, a slight increase in the scrap offers ex-US for October shipments will be observed as compared to the levels in the last week's bookings. Taking the price rise possibility into account, US suppliers, who have unsold cargoes for September shipments, are undecided about whether to give offers at $264-265/mt CFR Turkish ports. In the Black Sea region, due to the strong local market in Russia and the unlikelihood of Turkish mills' accepting levels parallel such local prices there, no bookings are heard for large-tonnage scrap cargoes ex-Russia. Taking the current local prices for large-tonnage A3 scrap ex-Russia for September shipments, it is almost impossible to hear price levels at or below $270/mt CFR Marmara for shipments to Turkey. If the market condition in Russia keeps its current state, it is thought that Turkish mills will mostly focus on deep sea cargoes. The price of an European supplier for HMS I/II 60:40 scrap has declined to $245/mt CFR Turkish ports; however this price level could not find any buyer. Another European supplier lowered its offer level for HMS I/II 70:30 from $251/mt CFR to $249/mt CFR Turkish ports. It is talked in the market that certain European scrap suppliers will likely enter the market with offers in serious amounts. Therefore, whether the market direction will change with the end of holiday period in Europe next week will start to gain clarity slowly.