Bookings may be concluded in Turkish scrap markets in pre-holiday period

Following the increased activity observed the previous week, the Turkish scrap markets were in a calm state last week. As we predicted in our analysis titled, “Turkish scrap market sees increase in activity”, with just a limited number of booking reports heard in the Turkish scrap market, prices increased slightly compared to the previous week. The price levels of concluded bookings were at the following levels: A scrap cargo booking of 40,000 mts ex-UK - divided 50/50 between HMS I/II 80:20 and half shredded scrap - was concluded at $281/mt CFR Iskenderun: another scrap cargo booking ex-Baltic Sea, consisting of 32,000 mts of PNS scrap and 18,000 mts of A3 grade scrap, was concluded at $289/mt CFR Nemrut: a booking of A3 grade scrap ex-Romania was concluded at $277/mt CFR Marmara; while a booking of A3 grade scrap ex-Russia was concluded at $281/mt CFR Marmara. Although no booking has been concluded this week so far, offer levels are the same as last week. Accordingly, shredded scrap ex-US and ex-UK is being offered at $285-287/mt CFR Turkish ports. HMSI/II scrap ex-same origins is being offered at $280-282/mt CFR Turkish ports. A3 grade scrap ex-Baltic Sea is being offered at $285-288/mt CFR Turkish ports, while A3 grade scrap ex-Black Sea is being offered at $277-282/mt CFR Turkish ports. Problems regarding ship supply and higher freight rates continue in the Black Sea. Although the Turkish scrap markets are calm for now, it is reported that bookings may be concluded in the market before the holiday period. Meanwhile, there are some rumors in the market that procedures regarding scrap exports from Algeria will be amended as of the New Year. Although no final decision has been made regarding the issue, it is being said in the market that scrap tonnages to be exported from Algeria will decline as of 2007.