Ex-Black Sea scrap prices continue their downtrend

According to market sources, ex-Russia A3 quality scrap offers to Turkey have decreased by $15-20/mt in the last two weeks to $343-345/mt CFR Marmara and to $345-348/mt Nemrut. Meanwhile, the latest ex-Russia deals for A3 quality scrap to Turkey were concluded in the price range of $340-342/mt CFR Nemrut. As of this week, ex-Romania A3 quality scrap offers to Turkey are at $340-342/mt CFR Nemrut.
 
Deep sea scrap prices, which have continued their downward trend at a faster rate, have put pressure on Black Sea suppliers' prices. Overall expectations in the global scrap market are for scrap prices to continue their downward movement and accordingly for Black Sea scrap suppliers to possibly lower their prices in the coming days. Additionally, even though some Turkish producers still need to buy scrap, with the market still trending downwards they have postponed their purchases. These producers are expected to restart their purchases and ex-Black Sea scrap purchases may accelerate once again after the religious holiday in Turkey which will end on October 7.
 
On the other hand, the Russian ruble continues to lose strength against the US dollar. In the last three days, the ruble has weakened very rapidly to RUB 39.66 to a dollar, falling to its lowest value since 1998 when the Russian currency was reconfigured. Therefore, Russian scrap suppliers may focus on the export markets in the coming days instead of on their local market.