With the Turkish mills not yet having commenced their anticipated scrap purchases, the Turkish scrap markets have continued to remain quiet.
Ex-US HMS I/II 80:20 prices, which were at the level of $400/mt CFR last week, are this week heard to be at levels of $380-385/mt CFR. Holding the view that HMS I/II 80:20 may be found at around $360/mt from Europe with the influence of the current €/$ exchange rate, Turkish mills consider that ex-US scrap prices are on the high side.
In a booking heard last week, ex-Europe HMS I/II 70:30 found a buyer at $349/mt CFR. After this offer which had been on market for a long time evolved into a booking, despite the expectation that Turkish mills would start buying scrap and that prices had already bottomed, no other booking was heard for the remainder of the week.
Ex-Black Sea A3 offers are standing generally at levels of $360-365/mt CFR, but these levels have not yet found acceptance among Turkish mills. Transactions have been heard in the range of $340-345/mt CFR. Also, some suppliers who need to sell their materials urgently are observed to have lower price levels.
As regards short sea cargoes, some mills which accepted the level of $320/mt CFR last week appear to be having difficulty this week in finding offers at the mentioned level of $320/mt CFR.
As the Turkish mills are still expected to start scrap purchases, scrap suppliers are resisting any decreases in their prices to the mills' desired levels. On the other hand, the decline of scrap prices in the local Turkish market continues, with HMS I scrap dropping to TRY 510-540/mt. Having so far concluded very few - hardly any at all - scrap transactions for the month of May, it is thought that the Turkish mills now need to make scrap purchases. Scrap prices are expected to recover when the Turkish mills start to buy.