Turkish producers have generally abstained from concluding new scrap bookings for some time now, causing scrap prices to soften. Only a few bookings were concluded last week, and no new bookings have been heard so far this week.
HMS I/II 80:20 scrap ex-US, which was offered at $455-460/mt CFR levels in previous weeks, was transacted at $450/mt CFR last week. Another booking of a cargo composed of shredded, P&S and HMS I ex-Canada was concluded at $455.50/mt CFR. This week, SteelOrbis understands the price level of $450/mt CFR is offered for cargoes ex-US, while some producers are willing to accept levels at $445/mt CFR.
An ex-UK HMS I/II 80:20 cargo was sold at $449/mt CFR last week. No sales ex-Europe have been heard. Any drop that might occur in the recently fluctuating euro/dollar exchange rate may make it easier for sellers in this region again. HMS I/II 70:30 scrap grade is considered to be in the range of $430-435/mt CFR.
A3 grade scrap offers ex-Black Sea are above what Turkish producers consider acceptable. A3 grade scrap ex-Russia is offered at above $450/mt CFR, while ex-Romania A3 grade scrap is offered at $445/mt CFR Marmara. Despite these offers, the purchase price idea of steel producers today does not exceed $440/mt CFR. The scrap collecting price level in Romania today is in the range of $405-415/mt.
While steel producers do need to buy scrap, the scrap supply is expected to become more plentiful due to seasonal factors. If no significant change is seen in the current circumstances, scrap prices are expected to be at moderate levels throughout April.