Despite this situation, some bookings, though not many, are being concluded under more favorable conditions for producers. For example, in a scrap booking ex-deep sea concluded last week, HMS I/II 90:10 scrap found a buyer at the level of $340/mt CFR; shredded scrap was booked at $345/mt CFR and P&S scrap was at a level of $350/mt CFR Turkey. Nevertheless, we think that it could be misleading to compare such bookings with the previous ones and to arrive at the conclusion that prices in the market are declining. In the current market conditions, we see that the scrap bookings concluded under relatively more favorable conditions constitute rare and particular cases. Looking at the overall picture, as already mentioned above many ex-deep sea scrap suppliers are finding it next to impossible to lower their offers for HMS I/II 80:20 scrap below the level of $345/mt CFR due to the high costs.
The same situation applies for A3 grade scrap ex-Black Sea and for scrap ex-short sea. The price offer for A3 grade scrap ex-Black Sea hovers above the level of $345/mt CFR Turkish ports.
In the markets where distressed conditions are prevailing at this time of the year as winter approaches, we think that it is difficult to expect a decline to be seen in scrap prices in the short-term, especially given the current freight rates and the €/$ exchange rate.