Turkish mills' scrap bookings have revived early this week. With prices declining to levels they had desired, buyers have concluded new scrap transactions and the increased scrap purchasing activity has prevented further declines in scrap prices. The widespread opinion in the market is that scrap prices have already hit the bottom and will start trending sideways from now on. On the first day of the current week, in an ex-UK scrap transaction to Turkey the price of HMS I/II 80:20 stood at $333.5/mt CFR, indicating an increase of $8/mt as compared to the previous ex-western Europe scrap transaction to Turkey, while scrap suppliers are no longer willing to cut their prices. In the latest ex-Europe scrap transaction to Turkey, the price of HMS I/II 75:25 increased by $3/mt compared to the previous booking level, reaching $318/mt CFR.
On the other hand, the price of ex-US HMS I/II 80:20 was at $344/mt CFR Turkey in the latest booking concluded early this month, but the likely trend for ex-US scrap prices in the coming period remains unclear. In the meantime, it is reported that in some local US markets demand for certain scrap grades has strengthened. Although the finished steel markets are not so lively these days, the increased optimism in the scrap market may lead to a rise in demand for ex-US scrap offers in the days to come.