With the uptrend seen in scrap prices recently, scrap suppliers' offers to the Turkish market have become rare. Scrap suppliers seem to be trying to gain a clearer picture of the thinking of scrap buyers by providing some price ideas instead of giving exact offers, while they are planning to decide their position in this period by keeping a close eye on market developments.
Ex-US scrap suppliers state that prices should be at $420/mt CFR Turkey for HMS I/II 80:20, at $425/mt CFR for shredded scrap and at $430/mt CFR for P&S scrap, though no transaction has been concluded at these price levels.
In the meantime, no ex-Europe scrap transaction has been heard either recently. In transactions late last week, the price of HMS I/II 70:30 for Turkey was at $375/mt CFR, but this price is expected to see an update this week in line with higher ex-US scrap prices. At the weekend, a transaction to Turkey for an ex-Denmark scrap cargo including HMS I/II 90:10, shredded scrap and bonus grade scrap was concluded at $399/mt CFR.
Regarding ex-Black Sea scrap, suppliers are trying to impose price levels of $395-400/mt CFR Turkey for ex-Romania A3 scrap and $400-405/mt CFR Turkey for ex-Russia A3 scrap. However, finding these price levels to be on the high side, Turkish mills state that prices above $390/mt CFR are not currently reasonable for A3 scrap. Scrap collection prices in Romania are at $355-360/mt.
There is currently quite a gap between the price ideas of scrap suppliers and buyers, while it is thought that the market will find its definitive shape with transaction prices on which both sellers and buyers manage to reach agreement.