Ex-Canada bookings cause confusion in Turkish scrap market

The price in three ex-Canada scrap transactions to Turkey concluded last weekend has caused confusion in the Turkish scrap market.
 
As already reported by SteelOrbis, towards the end of last week many ex-US scrap suppliers placed bids at over $405/mt CFR for HMS I/II 80:20 in a scrap purchase tender opened by a Turkish mill, while in another ex-US scrap transaction the price of HMS I/II 80:20 was at $392/mt CFR and the price of shredded scrap was at $397/mt CFR. In the meantime, in an ex-Europe HMS I/II 70:20 transaction to Turkey the price was at $370/mt CFR. Moving to the weekend, three scrap bookings by different Turkish mills, each consisting of 22,000 mt of shredded scrap, 20,000 mt of HMS I scrap and 8,000 mt of bonus grade scrap, at the average price level of $380/mt CFR have caused a shock in the markets. Many scrap suppliers do not think that the price level in these bookings reflects actual market price levels, though contracts have already been drawn up for these bookings, two for December shipments and the remaining one for January shipment. Some market players think that the prices in these bookings are below market price levels as the supplier has sought to deplete its stocks before the year-end and before waterways freeze over and freight rates climb. SteelOrbis has learned that another Turkish mill is also conducting negotiations with the supplier of these bookings for a scrap transaction at the same price level.
 
A Turkish mill is known to have opened an import scrap purchase tender and, after the latest ex-Canada scrap bookings, market players are waiting to see the price levels which will be offered by ex-US scrap suppliers. For December, Turkish mills' price expectations for ex-US HMS I/II 80:20 are not above $385-390/mt CFR.