Scrap prices had previously increased by $25-30/mt in general due to the uptrend in scrap demand from the Far East and Turkey. During this period of climbing prices, Turkish producers concluded deals for approximately twenty scrap cargoes. Meanwhile, it is observed that scrap purchase activity in Turkey has started to slow down since the middle of last week.
In Turkey, the two most recently heard scrap deals have been concluded from the Baltic region. A3 grade scrap price has been at $290/mt CFR, shredded scrap has been at $293/mt CFR, with the average price level at $292/mt CFR Turkey. On the other hand, it is expected that scrap prices in the US domestic market will likely see a significant increase in early December. Since in the US domestic market local scrap price levels have in November been lower compared to the increasing export price levels, scrap suppliers in the US have turned their attention to the export markets. Consequently, scrap supplies in the US domestic market have registered a tightening. Although there is no great volume of scrap offers heard for the time being, it is thought that the ex-US scrap price idea at $295-300/mt CFR Turkey for HMS I/II 80:20 will not gain much acceptance from Turkish producers. On the other hand, Turkish producers' price idea for HMS I/II 80:20 scrap is currently at around $285/mt CFR Turkey.
Meanwhile, ex-Black Sea scrap prices have been stable since last week's analysis. Although scrap collecting costs in Romania suddenly increased to around $275/mt last week, they subsequently softened, currently standing at around $260/mt. Meanwhile, offers to Turkish producers are currently at $290-295/mt CFR Turkey. Also, it is heard that ex-Russia A3 grade scrap offers are at around $300/mt CFR Turkey.
Trying to reflect the uptrend in scrap prices in their finished steel products, Turkish producers are having trouble in achieving this aim since the demand for finished steel is still weak. As long as the scrap demand in Turkey does not weaken due to production cuts, no major price fall is expected in the short run in view of the approaching holidays and the winter season.