In the past week, Turkish steel producers have continued their scrap purchases and many ex-US scrap transactions have been concluded.
Price levels in ex-US scrap transactions have this week remained unchanged as compared to last week. Intensive sales by a large US scrap supplier at $390/mt CFR played an important role in this situation. Meanwhile, ex-US HMS I/II 80:20 scrap offers at $395/mt CFR did not attract any buyers last week, because of the abovementioned sales. This week, ex-US scrap offers for HMS I/II 80:20 material continue to stand in the price range of $395/mt CFR, while buyers will likely try to exert pressure on prices.
There are not any ex-Europe scrap offers heard at the moment. Considering actual scrap collection costs, it seems impossible for ex-Europe scrap offers to Turkey to remain below $385/mt CFR.
Although ex-Black Sea A3 scrap offers to Turkey reached $395/mt CFR last week, this offer level has not gained acceptance from any Turkish mills. Producers are not willing to accept A3 scrap offers higher than $385/mt CFR Marmara. Mills are expected to exert further pressure on ex-Black Sea scrap prices, with the comfort of their already concluded bookings and because the Feast of Sacrifice holiday begins next week.
It is observed that mills have not wholly left the scrap market, but are more insistent in their negotiations instead. Some transactions are expected to be heard this week, though they may be few in number. However, most producers are expected to postpone their purchases until after the holiday.