Although the religious holiday in Turkey is over and the Christmas-New Year holiday season is getting underway, it is observed that the Turkish mills have not yet begun their scrap purchases. In spite of the inactivity seen in the local market, no decrease has been recorded in scrap prices, in particular as regards ex-European scrap offers, and, under the influence of euro's increasing strength against the dollar, an increase has been observed instead.
While a deal for an ex-European cargo of HMS I/II 70:30 scrap was concluded at a price level of $248/mt CFR by a Turkish mill two weeks ago, a deal for a similar cargo from the same region was concluded by a Turkish mill last weekend at $260/mt CFR.
Ex-US HMS I/II 80:20 scrap offers have been standing at the level of $270-280/mt CFR, while no sale has been heard recently from this region. Meanwhile, bonus grade scrap offers from the US are at the level of $300/mt CFR.
Looking at the Black Sea region, A3 grade scrap offers are hovering in the range of $270-275/mt CFR, whereas the pricing idea of Turkish mills for A3 grade scrap is heard to be around $230-235/mt CFR. Also, it is thought that some bookings with small tonnages have been realized at a prices in the range of $235-270/mt CFR.
Offers given from Israel for HMS I/II 70:30 scrap, which had decreased to the range of $170-180/mt CFR two weeks ago, have reached the level of $230/mt CFR, in particular as a Turkish mill has been concluding considerable scrap purchases from this region and also as ex-European scrap prices have increased lately.
In spite of the increasing scrap prices, the decreases seen in finished steel products have caused Turkish mills to remain under considerable pressure. Although there is not a great number of buyers in the market, the expectation of a drop in scrap supplies with the arrival of the winter weather conditions has prevented scrap prices from going down further. Also, with the Christmas-New Year holiday season now getting underway, ex-Europe and ex-US bookings are not expected to be concluded for a while.