While the Turkish producers' scrap purchases registered increased activity towards the end of last week, it is observed that scrap prices have gone up both in the local and import Turkish markets.
Accordingly, the price level of HMS 1 scrap in the local Turkish market has increased to Ykr36-42/kg.
As a result of the difficult wintertime conditions in the US, scrap collection activities there have slowed down further. Although demand is not too lively, scrap prices in the local US market have increased by $15-20/mt due to the decrease in supplies. This price uptrend has been reflected in the US' scrap prices for the export market. Thus, the ex-US HMS I/II 80:20 scrap price level in Turkey increased towards the end of the last week. While at the beginning of last week the price levels of ex-US scrap prices in Turkey were at around $281/mt CFR Turkey ($264/mt FOB East Coast ports), this price level reached $287/mt CFR Turkey ($270/mt FOB East Coast ports) in the deals concluded towards the end of last week. Following parallel increase trends, shredded scrap prices have reached the level of $292/mt CFR Turkey, whereas P&S scrap prices have risen to $297/mt CFR Turkey.
A similar scrap trend to that seen in the US is also evident in Europe. Scrap supply is observed to be decreasing in Europe as a result of the decline in industrial manufacturing in the context of the current economic crisis. Similar to the situation in the US, although demand is not too lively in Europe, scrap prices have nevertheless increased in the local European markets. Recently heard scrap price levels in the local Italian market are at around €260/mt for shredded scrap, at around €220-240/mt for demolition scrap and at approx. €280/mt for busheling scrap - all prices are for delivery to customer. As regards Turkish producers' purchases, the price levels of ex-Europe HMS I/II 70:30 scrap are at $278-279/mt CFR Turkey ($269/mt FOB Belgium).
As the holidays are over in Russia, it is thought that ex-Russia scrap suppliers' offers will gradually start to be heard in Turkey. Meanwhile, ex-Romania A3 scrap offers are at $285/mt CFR Turkish ports.
As regards the current week, it is heard that a price level of around $300/mt CFR Turkey is being mentioned in import scrap offers. Having reflected the scrap price increase in their finished steel product prices, the Turkish producers have now turned all their attention towards selling their February production finished steel products. As has been the case for a long time now, the direction of finished steel product prices will continue to have a strong influence on future scrap purchasing strategies.