With the return of Turkish steel producers to the scrap market for new purchases, scrap suppliers have pushed up their prices.
After dropping to $415/mt CFR last week, it is reported that ex-US scrap offers have risen this week. While ex-US HMS I/II 80:20 offers to Turkey are currently heard to stand at $420-425/mt CFR, no confirmed booking has been reported so far.
As we mentioned in our previous scrap analysis earlier this week, ex-Black Sea A3 scrap prices had seen the price level of $395/mt CFR Turkey early this week. However, as scrap demand has increased during the current week, offers have now reached $410/mt CFR Turkey. Nevertheless, Turkish steel producers' bookings have been concluded at about $400-404/mt CFR.
While scrap prices are testing higher levels this week with the return of producers to the market, the global economic uncertainty is still exerting an influence on the market. While the euro has lost strength once again against the US dollar, the dollar has also strengthened rapidly against the Turkish lira. These developments make it difficult to predict at what levels scrap prices will gain acceptance.