Turkish scrap market, which has been following an upward trend for the last several weeks due to the increase in the freight rates, is still on the rise this week.
It is heard that scrap inventories of the mills operating in the US local market are not in a good state and that local demand in the US market is strong. Since there is possibility of scrap prices in the US local market, which increased by $10/mt last week, to rise further, suppliers of US scrap hesitate to give offers to Turkish mills. Although Turkish mills are willing to buy scrap, there aren't many offers available in the market. On the other hand, since freight rates are risky, scrap suppliers are reported to be trying to give offers after arranging ships in an effort to minimize this risk.
The price levels in the bookings concluded at the end of last week and early this week are at $335/mt CFR for HMS I/II 80:20 and at $340/mt CFR for shredded scrap ex-UK, and at $327.50/mt CFR for HMS I/II 60:40 ex-continental Europe.
It is predicted that the offers will be at the following levels this week:
Shredded scrap ex-deep sea |
$345-350/mt CFR Turkey |
HMS I/II 80:20 ex-deep sea |
$340-345/mt CFR Turkey |
HMS I/II 60:40 ex-deep sea |
$329 - 332/mt CFR Turkey |
A3 scrap ex-Black Sea |
$338 - 343/mt CFR Turkey |