Ex-US scrap prices trend upwards

Turkish steel mills' import scrap purchases were expected to slow down this week due to the Christmas holiday in the US and in Europe, after a certain acceleration in bookings was witnessed last week. However, in the first day of the Christmas holiday an ex-US scrap booking of a Turkish mill has been heard.
 
Accordingly, yesterday, December 24, a Turkish mill has concluded a booking for an ex-US scrap cargo composed of 13,000 mt of HMS I/II 80:20, 10,000 mt of shredded scrap and 2,000 mt of bonus grade scrap at an average price level of $400/mt CFR. In another ex-US scrap transaction at the weekend concluded by a Turkish mill, which normally prefers supplying in its needs with short-sea bookings, the transaction price of a mixed scrap cargo composed mostly of HMS I/II 80:20 was at $396/mt CFR.
 
After recording a victory in a pricing power fight with suppliers on the scrap ground two weeks ago, keeping prices below $385/mt CFR for ex-US HMS I/II 80:20, Turkish mills have accelerated their scrap bookings since last week, ahead of harsher winter conditions, retreating from price battles. As a result, ex-US HMS I/II 80:20 transaction price of Turkish mills has increased to the range of $388-394/mt CFR in last week's bookings, showing that Turkish mills are getting prepared for winter and yesterday's booking has clenched this.
 
Although Turkish mills are clearly stating that they are expecting an uptrend in finished steel market and that they are considering pushing up their prices, buyers do not seem to be ready for such an increase. Under these conditions, market players state that if finished steel demand does not revive and supply and demand remain unbalanced, scrap prices would not show significant upticks and that ex-US HMS I/II 80:20 price will unlikely to increase above $400/mt CFR Turkey.