Demand from Turkey boosts scrap prices

In the past week, the scrap markets have seen some recovery with the increase of demand from Turkey. Several transactions for deep sea scrap have been heard, in which prices have registered increases.
 
Ex-US HMS I/II 80:20 has been transacted at the price level of $347/mt CFR in the latest booking. With this booking, the price of HMS I/II 80:20 scrap, which had been standing at $330/mt CFR in the previous week, has indicated an increase of $17/mt within a very short period of time. On the other hand, the price of ex-UK HMS I/II 80:20 scrap has been standing at around $340/mt CFR.
 
Several ex-Europe scrap bookings have been heard, with prices seen to increase in these deals. In the latest transactions heard, the price of ex-Europe HMS I/II 80:20 scrap was $339/mt CFR, the shredded scrap price was $344/mt CFR, while the most recent offer for HMS I/II 70:30 was at $335/mt CFR.
 
The scrap collection price in Romania is heard to be at $295-300/mt. Ex-Black Sea A3 bookings in Turkey have been standing at about $330/mt, while new offers for this material have increased to the level of $335-340/mt CFR due to rising costs. Turkish mills are observed not to hold a positive view of these offers for the time being.
 
Although the scrap bookings are expected to revive the markets, the approach of the Ramadan has created uncertainty in the markets. Due to the summer holidays and Ramadan in August, expectations for the month in question have declined significantly. However, steel producers hope that the markets may revive in September.