SteelOrbis has learned from market sources that Russian and Ukrainian offers to Turkey for A3 grade scrap have decreased by $10-15/mt over the past week to $245-255/mt CFR. Early this week, a Turkish producer concluded an ex-Ukraine scrap deal for 5,000 mt of HMS I/II 90:10 scrap at $251/mt CFR Marmara, while another producer concluded an ex-Romania deal for HMS I/II 80:20 scrap at $248/mt CFR Marmara. Also, a steel producer in Turkey’s Marmara region concluded an ex-Ukraine deal for HMS I/II 90:10 scrap at $250/mt CFR in the middle of this week.
Turkish steel producers are still mostly focusing on ex-Black Sea scrap offers in order to meet their immediate needs for small tonnages. However, the sharp decline in deep sea scrap prices, which was observed in an ex-US scrap deal in Turkey yesterday, July 1, has started to influence ex-Black Sea scrap prices. Market sources state that Turkish producers are no longer accepting the price levels which were seen in ex-Black Sea scrap deals concluded early this week and are now making firm bids at $235-240/mt CFR. In the coming period, it is very likely that ex-Black Sea scrap suppliers will accept Turkish producers’ firm bids since more decreases are likely to be seen in deep sea scrap prices. Meanwhile, Russian steel producers’ scrap purchase prices are currently at the average level of RUB 10,700/mt ($192/mt) delivered to customer.
$1 = RUB 55.64