The downtrend in global scrap prices has not come to an end even though China's National Day holiday has come and gone. Expectations of increased scrap demand from Chinese producers have not yet become a reality. Furthermore, Turkish producers are delaying their scrap purchases as much as possible since finished steel demand is very stagnant in the global markets. Thus, global scrap trading has slowed down considerably as a result of weakness in the most important scrap buying markets.
Only one ex-deep sea scrap purchase has been heard in the last week in Turkey, with ex-Europe HMS I/II 70:30 scrap having been bought at $270/mt CFR, while it has been offered at around $290-295/mt CFR. Meanwhile, ex-US scrap offers for HMS I/II 80:20 at the price levels of $290-295/mt CFR have not been accepted by the Turkish producers. In Turkey this week, current price levels of ex-US HMS I/II 80:20 scrap are at around $285-290/mt CFR.
Meanwhile, the downtrend in A3 grade scrap prices continues to be observed. Accordingly, the most recently heard ex-Romania A3 scrap price has been at $275/mt CFR Marmara. While producers were forcing the price level of $280/mt CFR last week, this week they have been making firm bids at around $270/mt CFR against offers at approximately $275/mt CFR.
Although it is observed that the Turkish producers need to start making scrap purchases, they have delayed their purchase activity up to the present due to the stagnation in the finished steel markets. However, it is thought that they have now reached a critical point as regards the maintenance of their own production activities. Significantly, the SteelOrbis Fall Conference 2009 and 61st IREPAS Meeting that will take place in Dubai next week is being awaited impatiently as everyone wonders what the expectations of producers, end-users, trading firms and scrap suppliers will be for the coming period. The general expectations and conclusions that will be announced at the end of the conference will certainly help Turkish producers to shape the direction of their scrap purchase strategies in the coming period.