Scrap prices in Turkey have been maintaining their uptrend also during the current week. Tightness of scrap supplies in a context of strong global demand is generating upward pressure on prices of scrap.
Meanwhile, scrap price levels from the US, which is one of the main supply markets of the Far East producers, have continued to increase in both Turkey and the Far East. Currently, scrap offers given from the US to Far East producers have increased to around $350/mt CFR for shredded scrap. Meanwhile, in the latest ex-US scrap deal in Turkey, HMS I/II 80:20 scrap has been sold at $314.5/mt CFR, shredded scrap has been sold at $319.5/mt CFR while P&S has been concluded at $324.5/mt CFR. It is heard that new offers for ex-deep sea HMS I/II 80:20 scrap are at around $320/mt CFR Turkey.
On the Black Sea side, ex-A3 grade scrap prices continue to increase due to both global price increases and to the tightness on the freight side caused by the harvest season. After the latest deals concluded to Turkey this week at $313-315/mt CFR Marmara, it is heard that new scrap offers to Turkey are at above $315/mt CFR Marmara.
It is thought that the tightness of scrap supplies, which is the principal source of pressure on global scrap prices, will continue to be one of the main problems facing the global steel industry in the coming period.